Litecoin To Drop Below $60? Whale Deposits To Exchange

On-chain data shows a Litecoin whale has made a large deposit to the cryptocurrency exchange Binance, which could be a sign of selling.

Litecoin Whale Has Transferred $18.2 Million Worth Of LTC To Binance

According to data from the cryptocurrency transaction tracker service Whale Alert, a huge movement has been spotted on the Litecoin blockchain during the past day.

This LTC transaction saw around 516,809 tokens of the asset move across the network, approximately worth $31.5 million at the time the transfer had gone through.

Naturally, the whales are the only investor class capable of shifting around such a large number of coins in a single transaction. As whales can be influential entities in the market, their movements can be worth looking out for.

Due to this reason, this latest whale transaction might end up causing fluctuations in the LTC market as well, or at the very least, it could reveal info about the sentiment among these humongous holders.

How this transfer might end up affecting the cryptocurrency depends on what the intent behind it was. Here are some additional details related to this Litecoin transaction that could shed some light on the context around it:

Looks like this transaction needed a negligible fee of  0.00000503 LTC to go through | Source: Whale Alert

As the above image shows, this Litecoin whale made this transaction from an unknown wallet, meaning it was an address unattached to any centralized platform. This could suggest that this wallet was potentially the whale’s one.

There were two destinations of this transfer: one was towards an exchange (Binance), and the other was towards another unknown wallet. For the latter move, it’s hard to say what the purpose behind the transfer may have been. It could be for selling through a P2P deal or a change of wallets.

The former transfer, though, does hold a little more information: the whale wanted to use one of the services offered by the Binance platform. This would include selling, although it’s not a certainty.

This move towards Binance was worth about 300,000 LTC ($18.2 million). This is a notable amount that, if the whale did deposit selling after all, could cause a bearish effect on the price.

So far, Litecoin has managed to maintain above the $60 mark, as the chart below shows.

LTC continues its overall trend of sideways movement | Source: LTCUSD on TradingView

If this whale is looking to sell here, however, it could be a bad sign for the market, as it may mean that these humongous investors have started to give up on the cryptocurrency and are exiting ahead of any further drawdowns.

One positive that might still be there among this doom and gloom, though, could be the fact that the Litecoin miners have continued to back the cryptocurrency, as the mining hashrate, the measure of the computing power that they have attached to the network, has continued to set new ATHs.

The value of the metric seems to have been going up in recent days | Source: Litecoin Space

Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, LitecoinSpace.com