Key takeaways
- LTC fell 1.7% over the past 24 hours and is trading above $93 per coin.
- The drop comes amid weak demand.
LTC remains under $100
The cryptocurrency market has shown muted performance earlier this week, and selling pressure has eased only in recent hours. Litecoin is down about 1% in the past 24 hours and is currently trading above $93, off from a recent weekly high near $95 reached a few hours ago.
Despite the recent price action, Litecoin’s fundamentals remain neutral. The proportion of LTC supply in profit has declined to 57%, signaling increased distribution as investors have realized losses and taken profits over the past several days.
Data from Santiment indicate that much of the distribution has come from investors who acquired the cryptocurrency within the last two months.
Weakness is also evident in U.S. spot Litecoin exchange-traded funds (ETFs), which have so far struggled to attract meaningful demand.
SoSoValue data show that since the launch of a Litecoin spot ETF in October, cumulative net inflows have totaled approximately $7.26 million. The only U.S. spot Litecoin ETF available is LTCC Canary.
In the derivatives market, Litecoin funding rates turned negative twice in the past two days, indicating that short sellers have gained momentum. Litecoin open interest (OI) has recovered slightly to 5.57 million LTC but remains well below the pre-October 10 high of 8.80 million LTC driven by leveraged positions.
LTC could retest $90 support
The LTC/USD daily chart remains bearish and inefficient after the coin lost roughly 8% of its value over the past seven days. Litecoin dipped to support at $90.20 on Tuesday before rebounding into the $95.40 resistance area. It failed to clear the $95 region and is now trading around $93.66.
The Relative Strength Index (RSI) and Stochastic Oscillator sit below their neutral thresholds, suggesting bears are in control of the market.
If bullish recovery continues, LTC could climb above the $116 equilibrium level within the coming hours. Conversely, if the upside fails to hold the $90.20 area, Litecoin may drop toward the $80 support level.