Recently, Litecoin's price experienced a significant crash, yet signals of support soon followed, raising hopes for a recovery.
Recent Litecoin Price Movement
Like most cryptocurrencies, Litecoin suffered a price drop but found support just below the $98 zone. There have been attempts to recover, but weak demand has prevented a breakout from a wedge pattern, despite rising bullish momentum. The price recently broke below the wedge support, indicating insufficient demand strength. If the pattern had broken upwards, it could have led to a rally to $130, the next major resistance zone.
Can the Support Hold?
Litecoin may retest its 3-month support level near $97. A drop below this critical level could signal demand erosion and pave the way for further downside. Recently, LTC spot flows reduced by $6.59 million, while open interest in derivatives decreased by 2.91% to $466.58 million.
On-Chain Holder Dynamics Shifts
Recent market changes have forced investors to reevaluate their strategies. Swing traders reduced their holdings from 29.5 million to 27.51 million LTC, while short-term traders increased their balances from 8.06 million to 9.95 million coins. Long-term holders slightly increased their balances, indicating caution during this period of accumulation.
The current Litecoin situation reflects market uncertainty, showing subdued buyer activity. Key support is likely to be tested, which will be a critical factor in future price movements.
