- Litecoin is struggling in a bearish trend, with technical indicators suggesting a further drop despite increased whale accumulation.
- Litecoin whales are accumulating as investors anticipate a potential ETF approval, but bearish technical patterns point to a possible decline toward $80.
Litecoin (LTC) has been struggling in a bearish trend this year, with technical indicators pointing to even more downside potential. Despite an increase in whale activity, LTC’s price trajectory remains uncertain, leaving investors on edge.
LTC Price Dips Amid Market Uncertainty
As of Friday, Litecoin was trading at $93.80, marking a significant 36% drop from its yearly peak. The price hovered just above this month’s low of $83.33, raising concerns about further losses in the near term.
On-chain metrics present a mixed outlook. While the total number of LTC holders remains stable at 8.6 million, the number of whale transactions has surged. Data reveals that large LTC transactions jumped to 227 on Friday, up from 167 earlier in the week. This signals that institutional investors and major players may be accumulating LTC in anticipation of a rebound.
Why Are Whales Buying Litecoin?
Several factors could be driving this increased accumulation. One major speculation is the potential approval of a spot Litecoin ETF by the SEC, which could inject fresh optimism into the market. Additionally, Litecoin’s 365-day Mean Dollar Invested Age (MDIA) has risen to 600 from 500 earlier this year, indicating a trend of long-term holder accumulation.
Another key metric, the Market Value to Realized Value (MVRV) Z-score, has plummeted to its lowest level in months. Historically, a declining MVRV Z-score suggests that an asset is undervalued, potentially making Litecoin an attractive buy for strategic investors.
Technical Indicators Point to More Downside
Despite encouraging on-chain data, Litecoin’s technical analysis paints a bearish picture. The coin recently fell below the critical $112.50 support level, a key resistance from March 2024. Additionally, LTC has formed a rising wedge pattern—often a bearish signal—and a bearish flag continuation pattern, reinforcing the likelihood of further declines.
A mini death cross has also emerged as the 50-day and 100-day moving averages crossed downward, a sign that downward momentum could intensify. If LTC fails to regain bullish traction, the next critical support level to watch will be $80, its lowest point of 2025 so far.
While increasing whale activity and on-chain metrics hint at a possible future recovery, Litecoin’s bearish technical indicators suggest that further downside is likely in the short term. Investors should closely monitor the $80 support level and potential ETF news as key drivers of LTC’s next move.
