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On-chain data shows that a Litecoin whale made a large deposit to cryptocurrency exchange Binance, potentially worsening the coin's decline.
Litecoin Whale transferred 100,000 LTC to Binance today
According to data from cryptocurrency transaction tracking service Whale alertA large transfer was spotted on the Litecoin network over the past day.
This transaction involved the movement of 100,000 LTC across the blockchain, worth over US$7 million at the time of the move. Since the scale of the transfer is so large, a whale entity was likely behind it.
In general, whale translocations are worth monitoring, as they may ultimately cause market repercussions. How such a huge holder move would affect the asset, however, depends on the intention behind it.
Here are some additional details regarding the latest Litecoin whale transfer that may give an idea of why the investor made this decision:
Looks like the transaction only required a negligible fee of 0.008 LTC ($0.56) to be possible | Source: Whale Alert
As noted above, the whale transferred 100,000 LTC to wallets associated with cryptocurrency exchange Binance. The sending addresses were all unknown wallets that were not attached to any centralized platform.
These wallets are usually the addresses of investors. Transactions like this, where coins move from self-custodial wallets to exchanges, are called “exchange inflows.”
The latest influx of trades from Whale suggests that the investor wanted to use one of the platform's services, which can include selling. As such, the transfer may be bad news for Litecoin.
LTC down 3% in last 24 hours despite market rally
While most cryptocurrency sectors recorded profits over the past day, Litecoin was a strange case as it recorded negative returns.
As seen in the chart below, LTC plunged from the level above $73 to $68 during its latest decline.
The value of the asset seems to have gone through a rollercoaster in the last two days | Source: LTCUSD on TradingView
Litecoin, however, recorded a slight rebound from its low, as it returned above $70. Despite this increase, the coin was still down by around 3% over the past 24 hours.
Given the timing of the Binance inflow trade by the whale, it's possible that this move was ultimately intended to sell, as it coincided with this cryptocurrency rebound.
The whale could use this small push to exit the asset, potentially heading for the greener pastures that the rest of the market seems to offer.
When it comes to market capitalization, Litecoin only fell to 20th place on the list of top cryptocurrencies, meaning there are nineteen larger digital assets than there are currently. There is still some gap between LTC and Uniswap (UNI), 21st, so the coin is not likely to slide further, at least for now.
The market cap of the asset appears to be $5.2 billion at the moment | Source: CoinMarketCap
Featured image by Thomas Lipke on Unsplash.com, chart by TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the views of NewsBTC on whether to buy, sell or hold investments and, naturally, investing involves risks. You are advised to carry out your own research before making any investment decision. Use the information provided on this website entirely at your own risk.
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