Litecoin, the quick-to-rise crypto over the past week, hits the top. A bullish failure to break the $138 supply zone results in another negative cycle. Will the increased interest of whales in Litecoin amid ETF approval chances revert the downfall for a breakout rally?
By Vishal Dixit
Edited by Julia Sakovich
Updated
3 mins read
With Bitcoin BTC $84 235 24h volatility: 3.6% Market cap: $1.67 T Vol. 24h: $28.92 B struggling to hold the bullish grounds, Litecoin LTC $87.44 24h volatility: 7.0% Market cap: $6.60 B Vol. 24h: $472.54 M and the crypto market are witnessing a sudden bearish hit. As a close cousin of Bitcoin, Litecoin’s market value dropped by 1.74% in the past 24 hours to reach a market price of $124.77.
With the short-term pullback, the market cap is now down to $9.42 billion. As the declining trend gains momentum, is the LTC price trend bound to retest the $100 level?
As per data from IntoTheBlock, the large holders netflow in Litecoin over the past six months has remained mostly positive. This is except for a single plunge during the early February downfall.
Over the past 90 days, the change remains at +2.26%, with a current net flow of +121.12k LTC.
Along with the positive inflow, the historical concentration in Litecoin over the past six months revealed a surge in whale concentration. Currently, whales dominate 10.81% of Litecoin’s supply, holding 8.24 million Litecoins.
The retail holding has increased to 39.1 million LTC, while investors hold 28.92 million LTC. The whale concentration in the past six months has increased from 7.72 million LTC to 8.24 million LTC.
However, the short-term downfall is supported by a significant drop in whale holdings over the past 30 days by 16.34%. Nevertheless, the investor’s 30-day change has risen by 4.91%.
Currently, the non-retail concentration stands at 37.16 million LTC, accounting for 48.73% of the Litecoin supply. This indicates the dominance of stronger hands in the market, influencing the Litecoin price trend.
Finally, large transactions over the network have significantly increased, and so has the transaction volume. In the past six months, the total volume of large transactions over the network has risen from $3.12 billion to $10.57 billion.
This marks a significant rise of more than 200% in the past six months. Thus, the growing interest in the Litecoin network and the increased whale concentration support a possible comeback in Litecoin amid the increasing progress of the Litecoin ETF.
As per PolyMarket, the chances of Litecoin ETF approval in 2025 have significantly increased. PolyMarket users hint at an 84% chance of a Litecoin ETF getting approved this year.
This has surged from 39% in early January, indicating a significant rise in investor confidence.
In the daily chart, the LTC price trend reveals a sideways shift. Bound between the two crucial horizontal zones at $98 and $136, a consolidation arises.
With an intraday pullback of 3.93%, a bearish engulfing candle has entered the price range, undermining Sunday’s recovery of 3.12%. Amid the increasing bearish influence, the daily RSI line has also declined towards the halfway line.
As the selling pressure continues, the increased supply pressure in Litecoin warns of a negative cycle to retest the 200-day EMA near the low-boundary zone at $98.
Projecting similar ideas, Ali Martinez, a crypto analyst, highlighted a significant price shift in Litecoin. As per his latest tweet, Ali Martinez reveals a similar sideways shift in Litecoin with a pullback from the $135 resistance level.
#Litecoin $LTC faced rejection at the $135 resistance, which could lead to a pullback toward support at $98! pic.twitter.com/UchvWgc6G8
— Ali (@ali_charts) February 23, 2025
As per the analyst, this pullback could lead to a retest of the $98 support level. However, unlike previous trends, Litecoin’s network growth has shown significant improvement.
In case of continued network growth and whale support, the bull run in LTC price could breach the overhead ceiling. A breakout rally above $140 will put the $150 and $200 psychological levels on bullish radars.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
