Key insights
- LTC fell 1.7% over the past 24 hours and is trading above $93 per coin.
- Bearish performance comes amid weakening demand.
LTC remains below $100
The crypto market underperformed earlier this week, though selling pressure has eased in recent hours. Litecoin is down about 1% over the past 24 hours and is trading just above $93, below the weekly high of $95 reached a few hours earlier.
Despite the recent moves, Litecoin’s fundamentals remain neutral. The total supply of LTC held in profit fell to 57%, prompting heavier liquidation activity as investors recorded a mix of losses and gains in recent days.
Data from Santiment shows that much of the selling came from investors who bought the cryptocurrency within the past two months.
This weakness is also evident in U.S. spot Litecoin exchange-traded funds (ETFs), which have struggled to attract meaningful demand.
SoSoValue data indicates that since the launch of Litecoin ETFs in October, they have accumulated a cumulative net inflow of $7.26 million. The only spot-Litecoin ETF available in the U.S. is Canary’s LTCC.
On derivatives markets, Litecoin funding rates turned negative twice over the past two days, signaling that short sellers are gaining momentum. Litecoin’s open interest (OI) has recovered slightly to 5.57 million LTC but remains well below the pre-October 10 leverage-flush level of 8.80 million LTC.
LTC could retest $90 support
The LTC/USD daily chart looks bearish and inefficient, with the coin losing roughly 8% of its value over the past seven days. Litecoin dipped to support at $90.20 on Tuesday before quickly recovering to the resistance area around $95.40. It failed to break the $95 resistance and is now trading around $93.66.
The Relative Strength Index (RSI) and the Stochastic Oscillator (Stoch) sit below their neutral levels, indicating bears are currently in control of the market.
If a bullish recovery gathers momentum, LTC could climb above the efficiency level at $116 in the coming hours. Conversely, if bulls fail to defend the $90.20 zone, Litecoin could slide toward the $80 support level.