Litecoin (LTC) whales are returning to the market as the bull market establishes itself. A series of large transactions have been reported, indicating that these millionaire accounts are getting involved.
According to on-chain analysis platform Santiment, Litecoin on-chain and whale activity has increased recently. In a report shared on X (formerly Twitter), Santiment revealed that there has been a strong surge in Litecoin on-chain activity.
The chart shared by the tracker showed that the increase correlated with the price recovery, which could be the reason why investors are starting to wake up. Santiment noted that this recovery in on-chain activity led to address activity on the blockchain as well as whale activity reaching a 4-month high, a level not seen since June.
A total of 319,000 daily addresses were active on the network, after this metric had drastically declined in recent months. Furthermore, weekly whale transactions, which are transactions of over $100,000, reached a new 4-month high of 7,418.
These are not the only metrics that saw an increase as dormant LTC addresses started moving again. These addresses, which had not seen any movement for a while, started moving coins, increasing the current circulating supply.
The revival of on-chain activity for Litecoin is a welcome development for the network, but it is not exactly positive. The reason for this is the reaction of the LTC price since the start of this activity, which is not very encouraging.
As the dormant LTC started moving again, the price started to decline. This suggests that this subgroup of holders may have sold their coins after holding onto them and waiting for better prices. In this case, selling pressure outweighed the demand for the coin.
If this trend continues, the price is likely to continue to fall, and a recovery to $100 is still far away. Therefore, the recent wave of activity may simply be due to investors deciding to sell instead of participating in purchases.
The LTC price has already fallen from its level of $69 on Thursday to as low as $67 on Friday before experiencing a slight recovery. Currently, the Litecoin price is at $67.8, which represents a decrease of 2.14% in the past day.
It is clear that Litecoin whales are actively participating in the market again, but their actions have had a negative impact on the price. Whether this trend will continue or if the price will recover remains to be seen. Investors will be keeping a close eye on the on-chain and whale activity to gauge the future direction of Litecoin.
