Key takeaways
- LTC has declined 1.7% over the past 24 hours and is trading above $93 per coin.
- The downward move is occurring amid weakening demand.
LTC remains below $100
The broader cryptocurrency market underperformed earlier this week, although selling pressure has eased in recent hours. Litecoin is currently down about 1% over the past 24 hours and is trading just above $93, having fallen from a weekly peak near $95 reached a few hours earlier.
Despite recent price action, Litecoin’s fundamentals appear neutral. The share of LTC coins in profit has dropped to 57%, contributing to heavier selling, while investors have been realizing losses and taking profits over the past few days.
Data from Santiment indicate that much of the distribution is coming from investors who purchased cryptocurrencies within the past two months.
This weakness is reflected in U.S. spot Litecoin exchange-traded funds (ETFs), which have so far failed to generate notable demand.
According to SoSoValue, since the October launch of spot Litecoin ETFs they have accumulated a net inflow of $7.26 million. The only spot Litecoin ETF available in the U.S. market is Canary’s LTCC.
In derivatives markets, Litecoin funding rates flashed negative twice over the past two days, suggesting short sellers are gaining momentum. Litecoin’s open interest (OI) has recovered slightly to 5.57 million LTC but remains well below the leveraged levels seen on October 10, when OI reached 8.80 million LTC.
LTC could retest $90 support
The daily LTC/USD chart remains bearish and ineffective, with the coin losing roughly 8% of its value over the past seven days. Litecoin dropped to the $90.20 support level on Tuesday but quickly rebounded toward resistance near $95.40. It failed to break the $95 resistance and is now trading around $93.66.
Technical indicators such as the Relative Strength Index (RSI) and the stochastic oscillator remain below neutral levels, indicating bears currently control the market.
If a bullish recovery gains traction, LTC could climb above the $116 resistance level in the coming hours. Conversely, if bulls fail to defend the $90.20 area, Litecoin could slide toward the $80 support level.