Key takeaways
- LTC has fallen 1.7% in the past 24 hours and is trading above $93 per coin.
- The bearish move comes amid weakening demand.
LTC remains below $100
The cryptocurrency market struggled at the start of this week, and although selling pressure eased in recent hours, Litecoin has edged down about 1% over the last 24 hours and is currently trading just above $93. This is a pullback from the weekly high near $95 reached a few hours earlier.
Despite the recent price movement, Litecoin’s fundamentals remain broadly neutral. The share of LTC coins in profit has fallen to 57%, which has driven notable selling activity as investors have combined both loss realization and profit-taking in recent days.
Data from Santiment indicate that much of the distribution originated from investors who purchased crypto within the past two months.
This weakness is also visible in U.S. spot Litecoin exchange-traded funds (ETFs), which have so far failed to attract significant demand.
According to SoSoValue, cumulative net inflows into the U.S. spot Litecoin ETF market since the ETF launch in October have totaled $7.26 million. Canary LTCC is the only spot Litecoin ETF currently available in the United States.
On the derivatives side, Litecoin funding rates have slipped into negative territory twice over the past two days, signaling that short sellers are gaining strength in the Litecoin market. Open interest (OI) in Litecoin has recovered slightly to 5.57 million LTC but remains well below the pre-October leveraged peak of 8.80 million LTC.
LTC could retest $90 support
The daily LTC/USD chart remains bearish and inefficient, with the coin losing roughly 8% over the past seven days. On Tuesday, Litecoin touched a support area near $90.20 before moving back toward resistance around $95.40. It failed to break the $95 level and is now trading near $93.66.
The relative strength index (RSI) and stochastic oscillator (Stoch) sit below their neutral midlines, suggesting bears currently control momentum.
If a bullish recovery gains traction, LTC could attempt to reclaim the $116 zone in the coming hours. Conversely, if buyers fail to defend the $90.20 area, Litecoin could slide toward the next support near $80.