Litecoin (LTC) Price Drops 13% as Bitcoin Falls Below $100K, But Hash Rate Reaches All-Time High

Litecoin (LTC) has dropped to $94.54, marking a 13.01% decline in the past 24 hours and a 21.40% decline over the past week.

Litecoin (LTC) price dropped to $94.54, showcasing a 13.01% decline in the past 24 hours and a 21.40% decrease over the past week. The recent sell-off is part of a broader market weakness, with Bitcoin dropping below $100,000 for the first time in two weeks.

However, despite the downturn, blockchain analytics platform IntoTheBlock reports that 78% of Litecoin addresses have held their coins for over a year. This long-term holding trend has typically seen accumulation during bear markets and selling near peak prices.

Moreover, the platform highlights that the decrease in long-term holdings this cycle is smaller than in previous cycles, suggesting that many holders expect further price growth.

Litecoin Hash Rate Reaches All-Time High

Interestingly, Litecoin's hash rate has climbed to a record 1.84k TH/s, surpassing its 30-day average of 1.53k TH/s and the previous high of 1.77k TH/s. This surge reflects growing mining activity and increased network security.

Despite the price volatility, miners remain confident in Litecoin's long-term potential, as evident by the sustained growth in hash rate. The higher hash rate aligns with Litecoin's historical reputation as a stable network.

The increased mining activity supports network stability and may reassure investors of its resilience during market corrections.

Institutional Interest Grows as Grayscale Buys the Dip

Despite Litecoin's price drop, Grayscale Investments continues to accumulate the digital asset. Data from CoinGlass shows that the firm purchased 2,230 LTC on Thursday, adding to its 30-day total of over 41,100 LTC. Grayscale's total Litecoin holdings are now valued at over $220 million.

This accumulation highlights institutional interest in Litecoin, even during periods of market weakness. Grayscale's activity has sparked speculation about the potential filing for a spot Litecoin ETF in 2025.

According to Bloomberg's Eric Balchunas, Litecoin's similarities to Bitcoin and the SEC's classification of LTC as a non-security could make it easier for an ETF approval.

Technical Analysis Points to Further Price Weakness

A glance at Litecoin's daily chart reveals bearish momentum, with the price trading below both the 9-day and 26-day moving averages. Additionally, the MACD indicator shows a bearish crossover, signaling increased selling pressure.

This momentum suggests that Litecoin could see further declines in the near term. The RSI is currently at 39.56, moving into bearish territory but not yet oversold.

If the RSI approaches the 30 level, it could indicate a potential price rebound. Key support levels to watch are $90 and $80, while resistance remains near $115. Traders should monitor these levels closely as Litecoin navigates its current correction phase.