- On-chain data suggests Litecoin is seeing more mega-million buying spree.
- While this technical fundamental points to a bullish future, more conviction is needed by the bulls to act.
Litecoin (LTC) is arguably one of the most revered digital currencies around today, and in line with its significance, it is notably gaining renewed attention from market whales. According to a recent update shares by the crypto analytics platform, Santiment, more big-money investors are entering the Litecoin market.
The platform revealed that transactions worth $1 million or more are beginning to flood the market, an indication of renewed interest, born out of the broad stability of the market starting from the beginning of this year. At the time of writing, Litecoin’s price is pegged at $88.99 atop a growth rate of 1.50 percent over the past 24 hours.
By a very large mile, Litecoin is trading at a better price compared to some of its peers, and its growth rate has been relatively more consistent over the trailing 7-day period. Within this time frame, the digital currency was up by 6.97% and atop this growth, the coin is now down by 78.43 percent from its All-Time High (ATH) price of $412.96.
Per the Santiment data, the last time such notable whale transactions were recorded for Litecoin, it resulted in a 37 percent growth rate. Santiment wrote.
Litecoin’s large whale transactions have exploded with activity, indicating a resurgence of transactions that are valued at $1 million or more. On the tail end of the last two similarly sized whale spikes, prices jumped +37% and +33% at their peaks,
⚡️🐳 #Litecoin's large whale transactions have exploded with activity, indicating a resurgence of transactions that are valued at $1 million or more. On the tail end of the last two similarly sized whale spikes, prices jumped +37% and +33% at their peaks. https://t.co/WD3Mc5QWKg pic.twitter.com/ruuIGXHEBQ
— Santiment (@santimentfeed) January 26, 2023
Is Litecoin Flashing Investment Opportunity?
The growth trend seen in most digital currencies is often driven by the combination of buying momentum from the duo of retail and institutional investors. The confluence of the actions of these market makers naturally presents an opportunity for growth, however, many may wonder if this marks a good entry point for Litecoin.
While Litecoin has good fundamentals, the decision to take a buying position in the coin has to be made in consideration of the broader crypto ecosystem.
Litecoin’s price growth is still largely susceptible to the broader market momentum as it is also highly correlated with Bitcoin. The cryptocurrency wields just a 0.61 percent dominance on the broader market, a figure that makes it not enough to decouple from the general market trend.
Just like the broader crypto ecosystem, there are still significant headwinds to watch out for in the financial sector that can have an overpowering effect on the price of Litecoin in both the long and short term. While the crypto industry has stabilized for the better part of this year, a little more stability may be required to declare that a good investment opportunity has now opened for Litecoin.
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Impact of positive Fundamentals
In the case of Litecoin, cryptocurrency is being adopted as a payment method in more businesses now than ever. As reported earlier by Crypto-News Flash, Litecoin processed 39 million transactions in 2022 as its usage grew by 109 percent to record one of its best years yet.
The digital currency is also expected to undergo its halving very soon, a network event that has been proven to positively drive price growth