Litecoin (LTC) is experiencing heightened whale activity alongside significant price volatility, with on-chain data revealing a surge in large transactions to a five-week high. According to analytics firm Santiment, the Litecoin Whale Transaction Count – which tracks transfers exceeding $100,000 – spiked to 503 transactions, marking the highest level since December 10th. This spike coincided with a recent price decline from a weekly high of $84 down to the $75 level, suggesting the volatility has prompted increased movement from large-scale investors.
Santiment notes that historically, such spikes in whale activity have often preceded price reversals for an asset. The firm pointed to two previous Whale Transaction Highs on December 3rd and 10th, both of which aligned with local price tops for Litecoin. "Historically, an asset has a significantly higher likelihood of reversal on whale spikes," Santiment explained. The current spike leaves the market questioning whether it signals an impending selloff or the formation of a price bottom, as the metric alone does not distinguish between buying and selling pressure.
Simultaneously, a separate bullish narrative is emerging from technical analysis. A prominent crypto analyst has highlighted that the Litecoin price chart exhibits a structure nearly identical to that of Monero (XMR), which recently broke to a new all-time high (ATH) of $596.87. Monero has seen explosive gains, rising over 8% in 24 hours, 60% in the past week, and 75% over the last month.
The analyst suggests that if Litecoin follows a similar trajectory, it could potentially experience a parabolic rally, targeting a price of $375 from its current level around $78 – representing a potential 5x increase. The comparison is based on observed relative strength since the 2022 bear market bottom, drawing parallels to Monero's historical cycles where it peaked in the same week in both 2017 and 2021.
As of the latest data, Litecoin has recovered slightly from its dip, trading near $78. The confluence of heightened whale activity and bullish chart comparisons has placed LTC under intense market scrutiny, with investors weighing the potential for a significant reversal or continuation of its recent trend.
