Litecoin Price Analysis

Litecoin price has crashed into a bear market this year, with technicals indicating further downside potential, despite an increase in whale activity.

As of Friday, Litecoin (LTC) was trading at $93.80, down 36% from its peak this year and slightly above this month’s low of $83.33.

On-Chain Metrics

On-chain metrics present a mixed outlook for Litecoin:
– The total number of holders remains steady at 8.6 million over the past few days.
– Whale transactions have surged, increasing to 227 on Friday, up from 167 earlier in the week, indicating that sophisticated investors are accumulating the coin in anticipation of a price rebound.
– The 365-day mean dollar invested age (MDIA) has risen to 600, an increase from 500 earlier this year, suggesting that more holders are accumulating Litecoin.


A possible reason for this accumulation is speculation that Litecoin may bounce back if the SEC approves a spot LTC ETF. Investors also perceive Litecoin as undervalued, as evidenced by the Market Value to Realized Value (MVRV) Z-score dropping to its lowest levels in months.

Technical Analysis

LTC Price Chart

The daily chart indicates that LTC has fallen below the vital support level of $112.50, the highest swing in March 2024.
– A rising wedge pattern has formed, featuring two ascending and converging trendlines.
– Additionally, a bearish flag pattern has appeared, commonly viewed as a continuation signal.
– A mini death cross pattern has emerged as the 50-day and 100-day moving averages have crossed, heightening the chances of a bearish breakdown.

If this breakdown occurs, traders should watch for a crucial level at $80, marking the lowest point anticipated for 2025.