After a 40%
increase in 2024, Litecoin (LTC) remains overshadowed by Bitcoin (BTC). While
Bitcoin is testing new all-time highs (ATH) this week, Litecoin seems largely
unaffected. Moreover, technical analysis indicates that Litecoin’s price could
potentially drop by as much as 50% from its current levels, revisiting the lows
from August 2024.
Will
Litecoin go up? Or is it headed for a steeper decline, possibly returning to
the $50 range? Let’s delve into the factors influencing its trajectory.
Will Litecoin Ever Go Up?
LTC Price In Consolidation
As of
January 21, 2025, Litecoin is trading at approximately $117, reflecting a 5.03%
decrease from the previous day. At the end of last week, the price of the
second-oldest cryptocurrency was testing levels above $140, aligning with the
local highs from December 2024. Together, these levels form a double-top
pattern, which will be discussed further in this analysis.
Litecoin price. Source: CoinMarketCap.com
Litecoin’s
recent price movements have been influenced by speculation regarding the
potential approval of a Litecoin exchange-traded fund (ETF). Reports suggest
that Nasdaq has filed an application to list a Litecoin ETF, which, if
approved, could attract institutional investors and significantly impact LTC’s
price and adoption.
On-chain
metrics also indicate a bullish outlook for Litecoin. Notably, 72% of LTC
addresses are currently in profit, suggesting widespread gains for holders.
This profitability often correlates with sustained bullish sentiment, as market
participants are less likely to sell at a loss.
⚡️📈 Litecoin has decoupled from other altcoins, jumping +16.1% in market cap in just the past 11 hours. Just as we saw in early December, the key driver appears to be whales and sharks holding at least 10K+ $LTC. They have accumulated 250K coins since Jan. 9th. 👀 pic.twitter.com/zCmu7tGKJl
— Santiment (@santimentfeed) January 15, 2025
Interestingly,
the latest all-time high (ATH) for Bitcoin
