Key takeaways
- LTC fell 1.7% over the past 24 hours and is trading above $93 per coin.
- The bearish move is occurring amid weakening demand.
LTC remains below $100
The cryptocurrency market showed weaker performance earlier this week, but selling pressure has eased in the last few 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 ago.
Despite the recent price action, Litecoin’s fundamentals remain largely neutral. The share of LTC coins in profit has dropped to 57%, prompting active sell-offs as investors have realized a mix of losses and gains over the past several days.
On-chain data from Santiment indicates that much of the distribution is coming from investors who acquired coins within the last two months.
This weakness is also evident among U.S. spot Litecoin exchange-traded funds (ETFs), which have failed to generate significant demand.
According to SoSoValue, since the launch of the Litecoin ETF in October, the funds have attracted a cumulative net inflow of $7.26 million. The only U.S. spot Litecoin ETF currently available is Canary’s LTCC.
In the derivatives market, Litecoin funding rates turned negative twice in the last two days, signaling growing short-side activity among traders. Litecoin’s open interest (OI) has recovered slightly to 5.57 million LTC but remains well below the leverage-driven peak of 8.80 million LTC recorded on October 10.
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. On Tuesday, Litecoin dipped to support at $90.20 before quickly rebounding to the resistance area around $95.40. It failed to clear the $95 resistance and is now trading near $93.66.
The Relative Strength Index (RSI) and the stochastic oscillator remain below neutral levels, indicating bears currently control the market.
If a bullish recovery gains momentum, LTC could push above the $116 resistance in the coming hours. Conversely, if bulls fail to defend the $90.20 area, Litecoin could slide toward the $80 support level.