Litecoin Whale Withdraws $11.4M LTC From Binance, Sign Of Accumulation?
Whale Alert, a service that tracks cryptocurrency transactions, has reported a significant transfer on the Litecoin blockchain within the past 24 hours. The transfer involved 122,769 Litecoin (LTC), valued at approximately $11.4 million at the time of the transaction.
Litecoin Whale Moves Large Amount Of LTC To Personal Wallet
Whale Alert tweeted a chart showing details of the massive LTC transfer. According to the image, the sender only paid 0.00004516 LTC as fees.
Moreover, the chart showed that the origin of the inputs for this significant Litecoin transfer was a wallet linked to the Binance crypto exchange. On the other hand, the recipient was an unfamiliar wallet.
Usually, unfamiliar wallets are addresses not associated with any recognized centralized platform, such as an exchange. Therefore, these wallets are self-custodial wallets held by individual investors.
When coins are moved from an exchange to a personal wallet, such transfers are called “exchange outflows.” Typically, investors transfer their coins from the exchange to their wallets for holding.
As a result, exchange outflows can positively impact the asset’s price by signaling a bullish sentiment. Given the substantial amount of coins involved in the transfer, it is probable that a whale entity was responsible for this transaction.
Whales are investors who hold significant digital currency reserves, enabling them to transfer large volumes of tokens at once. This ability allows them to exert a considerable impact on the price, making it necessary to monitor their actions closely.
Litecoin’s Price Witness Rapid Uptrend
In this case, the whale withdrew massive amounts of these crypto coins from Binance. Thus, it could indicate that the holder recently acquired these tokens and is now withdrawing them for long-term holding (HODL).
Lately, Litecoin’s price has witnessed a rapid uptrend, surpassing other digital currencies in market performance. Notably, the number of inflows to exchanges increased during the period.
Large investors capitalized on the uptrend to dump their holdings and take profit. However, this particular whale has made significant withdrawals during the price surge instead of making large deposits.
This could suggest that the investor holds a strong bullish sentiment toward the asset’s price and believes the current rally will persist for an extended period. Meanwhile, this prediction is only valid if the whale made the withdrawals to accumulate the asset.
If, on the other hand, the withdrawals were made to conduct peer-to-peer (P2P) trades for selling, it could have a bearish impact on the asset. At the time of writing, Litecoin was trading at $93.3, increasing by 9% in the past week, according to Coingecko data.
By comparison, the two largest digital currencies by market cap, BTC and ETH, have recorded little gains in the past week and continue to trade above $27,000 and $1,700, respectively.
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