Litecoin whales increase activity as price targets $75

Recent on-chain data reveals a surge in activity among large Litecoin (CRYPTO:LTC) holders, known as whales, sparking speculation about whether they could drive the altcoin's price back to $75.

On-chain analytics firm Santiment reported a notable rise in whale transactions, those exceeding $100,000, on the Litecoin network since late August.

This increase in transactions could indicate significant market movements ahead.

Whales are entities or individuals that hold substantial amounts of a cryptocurrency and can influence market trends due to their large holdings.

Their activities, such as buying or selling, are closely monitored because they often provide clues about potential price directions.

The rise in whale transactions on Litecoin suggests increased interest and activity, which could serve as a bullish signal for the asset.

However, interpreting this whale activity isn't straightforward.

An increase in whale transactions can mean either accumulation, where large holders are buying more Litecoin, or distribution, where they are selling off their holdings.

If whales are accumulating, it could lead to upward price momentum for LTC.

Conversely, if they are offloading their holdings, Litecoin's price could face downward pressure.

Alongside whale activity, Litecoin's social dominance has also been increasing.

The social dominance metric measures the percentage of discussions in crypto media focused on a particular asset.

A higher social dominance indicates heightened community interest, which often correlates with potential price movements.

As more social discussions center around Litecoin, it suggests the cryptocurrency is on the radar of many investors and traders.

Santiment's analysis indicates that the combined effect of rising whale transactions and increased social media chatter could signal an upcoming price breakout for Litecoin.

"Whether or not you are a fan of LTC, this is worth keeping an eye on," Santiment noted, emphasising the potential significance of these trends.

With these factors in play, Litecoin's future price movement remains uncertain but worth watching.

The actions of these large holders and the sentiment in the crypto community could provide further clues about whether LTC can rally back to $75 or face another downturn.

At the time of reporting, the Litecoin (LTC) price was $60.82.