Data shows the Litecoin whale has withdrawn $32 million in LTC from Binance, a sign that could be positive for the latest rally.
Litecoin whale takes $32M in LTC from Binance
As data from the crypto transaction tracker service Beware the Pope, a massive LTC transfer has happened in the past few days. In total, the transaction involved the movement of 425,660 LTC in the blockchain, worth around $32.1 million at the time of the transfer.
Related reading: Billion-Dollar Hedge Funds Betting Against Bitcoin And Grayscale, Not Just USDT
Usually, such large transfers are a sign of activity from the whales, and due to the size of the coins they usually exist, these movements can sometimes have a noticeable effect on the price of Litecoin.
However, the way prices will respond to transfers depends on their purpose. Here are some additional details about the latest whale transaction that may shed some light on his intentions:
Looks like this massive transfer only took a negligible fee of 0.00000224 LTC to be possible | Source: Whale Alert
As you can see above, this Litecoin transaction was sent from a wallet attached to the crypto exchange Binance, and the destination is an unknown wallet. An unknown address is an address that is not associated with any known centralized platform and may include private wallets.
Transfers of this nature, where coins move from an exchange to a private wallet, are called exchange exits, and since the owner usually withdraws from the platform for the purpose of accumulation, the outflow can have a bullish effect on the price.
Here, the exchange is carried out by whales, so it may mean that these big investors plan to hold Litecoin for a long time. In a few days since the new year has started, LTC has been rallying up with the coin has reclaimed $75, so the whale is not selling here to take advantage of this profitable opportunity and instead chooses to collect the conviction of investors that there are more coming for LTC.
There have also been other bullish signals for Litecoin recently, and monthly LTC transactions on BitPay, the largest crypto payment processor, have risen 109% in the past year. This means that the network has observed some steep growth in terms of adoption, a sign that should build for the price in the long term.
In just one year, the monthly usage of Litecoin, with the world’s largest crypto processor, increased by 109% 🚀 pic.twitter.com/DBXe6OTdib
— Litecoin (@litecoin) January 2, 2023
District LTC price
At the time of writing, Litecoin is trading around $75, up 8% over the past week.
The value of the crypto seems to have sharply surged in the last few days | Source: LTCUSD on TradingView
Featured images from Rémi Boudousquié on Unsplash.com, charts from TradingView.com