Litecoin (LTC) Price Prediction: Will LTC Crash by 25%?

The market is certainly in a dubious space at the moment. There is a lot happening in the crypto landscape as well as in the macroeconomic space.

The crypto market is experiencing contrasting movements, with some assets like LTC facing a potential price drop.

What Happened: Litecoin (CRYPTO: LTC) prices are showing signs of a massive drop, according to sources at Coinpedia.

The token’s poor performance is attributed to a formation of negative price action and bearish sentiment, as reported by Coinglass.

At the time of writing, LTC is trading at $127 with a 6% price drop in the last 24 hours.

Trading volume also took some hits and declined by 23%, indicating a lack of interest among traders in engaging in LTC trades at the moment.

This differs from the previous day when the community was optimistic as SEC was on the cusp of approving a spot ETF for LTC.

LTC Technical analysis by TradingView shows that the coin has been operating in a tight band between $95 low and $141 high since November 2023, showing somewhat bearish movement.

However, despite the bearish momentum, the coin’s price surged by 38% in the last few days.

Details show that the market is under tremendous selling pressure as it is fearing another price drop.

If LTC fails to break the $141 mark in the next few days, it could fall by 25% and go back to the $95 support level, as per historical data.

Meanwhile, the 200 EMA is showing that the coin is on a slight uptrend.

Mixed Metrics: On-chain analytics firm Coinglass reports that intraday traders are now mainly betting on the bearish side of the coin.

The exchange liquidation map shows that the short-side bettors are over-leveraging the $141.5 level.

As a result, they have built a whopping 67 million US dollars worth of short positions in the last week.

However, long-side traders seemed to be staying out of the game, as they had only built $21 million worth of long positions

Despite the bearish outlook of the coin, it seems that long-term investors are still on the spree of accumulating the token.

In the past 24 hours, around $9.41 million worth of LTC tokens have outflown out of exchanges.

It is safe to say that short-term traders are betting on the bearish momentum of the coin, while long-term players are using the slump to buy more.