Key takeaways
- LTC is down 1.7% in the last 24 hours and is trading above $93 per coin.
- The bearish performance comes amid weakening demand.
LTC stays below $100
The cryptocurrency market has underperformed earlier this week, but the selling pressure has subsided in the past few hours. Litecoin is currently down by 1% in the last 24 hours and is currently trading above $93, down from the $95 weekly high it reached a few hours ago.
Despite the recent price action, the fundamentals for Litecoin remain neutral. The total supply of LTC coins in profit dropped to 57%, creating a heavy selling activity, with investors posting a combination of loss realization and profit-taking in the past few days.
According to the data obtained from Santiment, the distribution comes mainly from investors who purchased the cryptocurrencies over the last two months.
This weakness is also significant across US spot Litecoin exchange-traded funds (ETFs) as they have failed to attract demand.
Data obtained from SoSoValue shows that since the launch of the Litecoin ETFs in October, they have attracted a cumulative net inflow of $7.26 million, according to SoSoValue data. The only spot Litecoin ETF available in the US is Canary’s LTCC.
On the derivatives market, Litecoin’s funding rates flashed negative twice over the last two days. This indicates short traders are gaining momentum in the Litecoin market. Litecoin’s Open Interest (OI) has recovered slightly to 5.57 million LTC but remains far from pre-October 10 leverage-flush levels of 8.80 million LTC.
LTC could retest the $90 support level
The LTC/USD daily chart remains bearish and inefficient as the coin has lost 8% of its value in the last seven days. Litecoin dipped to the $90.2 support level on Tuesday but quickly rallied to the $95.4 resistance area. It failed to overcome the $95 resistance area and is now trading above $93.66.
The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) are below their neutral levels, indicating that the bears are currently in control of the market.
If the bullish recovery continues, LTC could rally above the $116 efficiency level over the next few hours. However, LTC could drop to the $80 support level if the bulls fail to defend the $90.2 region.
