Data shows a Litecoin whale has withdrawn $11.4 million in LTC from Binance, a sign that more accumulation may be taking place in the market.
Litecoin Whale Withdraws Large Stack From Binance As LTC Shows Strong Rise
According to data from the cryptocurrency transaction tracker service Whale Alert, a large transaction has been spotted on the Litecoin blockchain during the past day. This transfer involved the movement of 122,769 LTC, worth about $11.4 million at the time the transaction went through.
Below are some additional details regarding this massive LTC transfer, that may shed light on some context around it.
Looks like this transaction only cost the sender a negligible fee of 0.00004516 LTC to be possible | Source: Whale Alert
As you can see above, the inputs for this large Litecoin transfer came from a wallet attached to the cryptocurrency exchange Binance, while the receiver was an unknown wallet.
Unknown wallets are generally addresses that are unaffiliated with any known centralized platform (like an exchange), and thus, are likely to be holders’ personal self-custodial wallets.
Transfers like these, where coins move from an exchange to an offsite personal wallet, are called “exchange outflows.” Usually, investors withdraw their coins from these platforms to their personal addresses for holding onto them for extended periods of time. Because of this reason, exchange outflows can provide a bullish effect on the price of the asset.
In the current case, since the movement of coins involved is so large, it’s likely that a whale entity was behind it. Whales are investors that hold large reserves of an asset, and thus, can move a high volume of coins at once.
This gives them the power to sometimes cause noticeable effects on the price, so their behavior can generally be something to keep an eye on.
Here, the whale has withdrawn a large number of coins from Binance, which could be a sign that the holder freshly bought these coins and is now taking them out to HODL.
Interestingly, this same whale also made an outflow just a couple of days back, as the below details show.
Another large LTC transaction | Source: Whale Alert
Recently, the price of Litecoin has shown a rapid uptrend and has outperformed most of the assets. During such times, deposits to exchanges aren’t uncommon to see as some whales rush to strike while the profit-taking opportunity is still hot.
But as this whale seems to have rather made some large withdrawals while this price surge has taken place, it could imply that the investor has a strong bullish conviction in the price and believes that the rally will continue even further.
Obviously, this would only hold true if these withdrawals were indeed made with accumulation in mind. If they were instead made with selling through peer-to-peer (P2P) trades in mind, however, the asset could feel a bearish effect instead.
At the time of writing, Litecoin is trading around $92, up 9% in the last week.
LTC has seen sharply gone up recently | Source: LTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, chart from TradingView.com