Litecoin Price Struggles As Whales Sell & Disappear, LTC Rebound Unlikely

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Litecoin Whales On Buying Spree Sack 930K Coins Amid LTC ETF Buzz, What's Next?

Highlights

  • Litecoin price has formed a double-top chart pattern on the daily chart.
  • LTC whales are selling their coins despite the rising ETF odds.
  • The double-top points to a big drop in the next few weeks.

Litecoin price remains in a tight range this week as crypto investors position themselves for the new Trump era. While the LTC  has a key catalyst in the potential ETF approval, there is a risk in that whales are dumping the token. So, is Litecoin a good investment?

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Litecoin Price At Risk As Whales Sell

On-chain data shows that Litecoin whales continued to dump the coin as its price dropped by almost 20% from its highest level this year. The Santiment chart below reveals that Litecoin whales have been net sellers, which is often a negative sign for an asset. That’s because these whales are often seen as being more sophisticated and experienced investors. These whales sold at the top when the coin jumped to $141 last week.

Litecoin Whale Transactions
Litecoin Whale Transactions

The other chart shows that the Network Realized Profit/Loss figure surged on the same day. These two charts mean that these whales sold their coins at the top and are yet to return with much vigor. That is a sign that they possibly expect the Litecoin price to drop further before restarting their accumulation. 

Litecoin NRP Value
Litecoin NRP Value

LTC Hash Rate And Transaction Count Have Dropped

In addition to whales selling, more onchain data shows that Litecoin’s hash rate has fallen, a sign that the network activity is lagging. The rate dropped from this week’s high of 1.94 TH/s to 1.83. It has moved below the 30-day average of 1.84 TH/s and the 30-day average of 1.97k TH/s.

Litecoin Hash Rate Drops
Litecoin Hash Rate Drops

Indeed, the falling hash rate has coincided with the ongoing drop in the number of transactions in the network. The 7-day average of these transactions is 197.7k, higher than the current 190k.

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LTC Price Forms 2 Risky Patterns

The value of LTC may be at risk of a deeper dive after forming a double-top-like chart pattern on the daily chart. This pattern is made up of two key parts: a twin peak (around $141.4) and a neckline (at $86). The pattern happens during an uptrend and is usually a bearish reversal sign. 

LTC price has also formed a small bearish pennant pattern. This pattern has a long vertical flag pole and a small triangle pattern and is often followed by a breakdown.

Litecoin Price Chart
Litecoin Price Chart

Litecoin Price Targets

Therefore, Litecoin remains at risk as long as it is below the double-top level at $141. In this case, the initial target will be at the neckline at $86.85, which is about 25% below the current level. 

On the flip side, a move higher than $141 will invalidate the bearish outlook and point to a surge, potentially to $200. A likely catalyst for the bullish breakout will be the rising ETF approval odds.

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LTC ETF Approval Maybe A Catalyst

On the positive side, Litecoin price has a potential catalyst in that the odds of a spot LTC ETF approval rose on Polymarket. Traders are giving it a 75% odd because Litecoin is similar to Bitcoin and the SEC does not see it as a security. An LTC ETF approval would likely lead to hype and potential inflows.

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Frequently Asked Questions (FAQs)

1. Why is Litecoin price falling?

Litecoin has dropped as more whales continue selling their coins and as the hash rate drops amid the ongoing crypto sell-off.

2. How low can LTC price get?

Litecoin may drop to the key support at $86 if the double-top pattern and the bearish pennant patterns work out.

3. What is the key Litecoin level to watch?

The key level to watch will be the double-top point at $141. A move above that level will invalidate the bearish view and point to more downside.
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.