Key Takeaways
- LTC has exhibited a decline of 1.7% within the past 24 hours, currently trading above the $93 threshold.
- This bearish trajectory is concomitant with a discernible weakening in market demand.
Current Market Dynamics of Litecoin (LTC)
The cryptocurrency landscape has demonstrated a degree of underperformance earlier this week; however, selling pressures have shown signs of abating in recent hours. As it stands, Litecoin is witnessing a 1% depreciation in valuation over the past 24 hours, trading just above $93, a notable decrease from the weekly apex of $95 reached within the same timeframe.
Despite these recent fluctuations, the underlying fundamentals governing Litecoin remain largely neutral. Notably, the proportion of LTC coins currently held at a profit has plummeted to 57%, engendering considerable selling activity as investors engage in both loss realization and profit-taking maneuvers over the preceding days.
Data retrieved from Santiment elucidates that this distribution trend predominantly emanates from investors who acquired their holdings within the last two months. Furthermore, this bearish sentiment is echoed across U.S. spot Litecoin exchange-traded funds (ETFs), which have exhibited a troubling inability to attract substantial demand.
According to insights provided by SoSoValue, since their inception in October, U.S. Litecoin ETFs have garnered a cumulative net inflow amounting to $7.26 million, with Canary’s LTCC standing as the sole spot Litecoin ETF available in the U.S. market.
On the derivatives front, it is worth noting that Litecoin’s funding rates have registered negative indicators on two separate occasions over the last 48 hours. This trend suggests that short sellers are gaining traction within the Litecoin market. While Litecoin’s Open Interest (OI) has witnessed a slight recovery to 5.57 million LTC, it remains significantly below pre-leverage flush levels of 8.80 million LTC observed prior to October 10.
Potential Price Movements and Support Levels for LTC
The daily chart for LTC/USD continues to exhibit bearish characteristics and inefficiencies, with Litecoin having experienced an approximate 8% depreciation in value over the past week. On Tuesday, the price touched upon the $90.2 support level but subsequently rebounded to the resistance area around $95.4. However, attempts to breach this resistance have been unsuccessful, and LTC is currently trading at approximately $93.66.
The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) indicators are positioned below their respective neutral thresholds, thereby signifying that bearish forces presently dominate market sentiment.
If bullish momentum is able to sustain its trajectory, there exists potential for LTC to rally beyond the efficiency threshold of $116 in the forthcoming hours. Conversely, should bullish defenders falter at the $90.2 support level, a decline towards the $80 support level could be imminent.
