This year, Litecoin has entered a bear market, with technical indicators suggesting further declines, even as whale activity begins to rise.
As of Friday, Litecoin (LTC) was trading at $93.80, which marks a 36% drop from its peak this year and hovers just above this month’s low of $83.33.
On-chain data presents a mixed outlook for Litecoin. On the bright side, the total number of holders has remained stable at 8.6 million over the past few days.
Additionally, the frequency of whale transactions on the network increased this week, climbing to 227 on Friday, up from 167 earlier in the week. This trend implies that larger investors are purchasing the coin in hopes of a price recovery.
Another crucial metric is the 365-day mean dollar invested age, which estimates how long a coin has been in its current wallet and provides the average age of the capital used for its purchase. Litecoin’s MDIA indicator has risen to 600, up from 500 earlier this year, indicating a growing accumulation among holders.
A potential factor driving this accumulation among whales and users could be the expectation that the coin will recover if regulatory authorities approve a spot LTC ETF. Moreover, investors believe that Litecoin is undervalued, as evidenced by the Market Value to Realized Value (MVRV) Z score reaching its lowest point in months. A declining MVRV indicates that an asset may be considered inexpensive.
Technical Analysis of Litecoin’s Price
The daily chart reveals that LTC has fallen below crucial support at $112.50, the highest level recorded in March 2024. Litecoin has formed a rising wedge pattern, characterized by two ascending, converging trendlines. Additionally, it has developed a bearish flag pattern, commonly viewed as a continuation signal.
Furthermore, Litecoin has established a mini death cross pattern as the 50-day and 100-day moving averages have intersected. This development raises the chances of a bearish breakdown, despite some optimistic on-chain metrics. Should this occur, the critical level to monitor will be $80, marking its lowest point in 2025.