Key takeaways
- LTC is down 1.7% in the last 24 hours and is trading above $93 per coin.
- The bearish performance comes amid weakening demand.
LTC remains below $100
The cryptocurrency market showed weaker performance earlier this week, though selling pressure has eased in recent hours. Litecoin (LTC) is down roughly 1% over the past 24 hours and is trading just above $93, slipping from a $95 intraday high reached a few hours ago.
Despite the short-term price movement, Litecoin’s fundamentals appear neutral. The share of LTC supply currently in profit has fallen to 57%, fueling selling activity as some investors realize losses while others take profits after recent gains.
On-chain data from Santiment indicates that much of the recent distribution came from investors who acquired LTC in the past two months.
Weak demand has also been visible in U.S. spot Litecoin exchange-traded funds (ETFs), which have struggled to attract significant inflows since their launch.
According to SoSoValue, Litecoin ETFs launched in October have collected a cumulative net inflow of $7.26 million. The only U.S. spot Litecoin ETF currently listed is Canary’s LTCC.
In derivatives markets, Litecoin’s funding rates turned negative twice in the past two days, signaling growing momentum among short sellers. Open interest (OI) for LTC has recovered modestly to 5.57 million LTC but remains well below the pre-October 10 leverage flush peak of 8.80 million LTC.
LTC could retest $90 support
The LTC/USD daily chart maintains a bearish bias after the coin lost about 8% of its value over the last seven days. Litecoin briefly dipped to a $90.20 support level on Tuesday before rallying to a resistance area near $95.40. It failed to clear the $95 resistance and is now trading around $93.66.
Momentum indicators such as the Relative Strength Index (RSI) and the Stochastic Oscillator sit below neutral levels, suggesting bears currently control price action.
If buyers regain strength, LTC could push above the $116 efficiency level in the coming hours. Conversely, if bulls fail to defend the $90.20 region, Litecoin may revisit support near $80.