Litecoin (LTC) is currently holding steady near the $85 mark after a modest 6% rebound earlier this week. Despite this short-term recovery, several on-chain indicators suggest that the cryptocurrency could be heading for a period of downward pressure, as profit-taking and large-scale token movements signal a shift in market sentiment .
Key Factors Behind Litecoin’s Bearish Outlook
1. Surge in Profit-Taking Activity
Recent data from Santiment reveals that LTC holders are cashing out at the highest rate seen in the past three months. The Network Realized Profit/Loss (NPL) metric spiked significantly on Wednesday, indicating that many investors are selling their holdings at a profit. This uptick in profit-taking typically increases selling pressure, which can weigh on the price .
2. Dormant Wallets Spring to Life
Another bearish signal comes from the Age Consumed index, which tracks the movement of long-inactive tokens. Spikes in this metric suggest that coins held in dormant wallets are being transferred—often to exchanges—potentially in preparation for sale. Historically, such activity has preceded local price tops and subsequent declines for Litecoin .
3. Whale Offloads 340,000 LTC
Santiment’s supply distribution data highlights a notable move by a large holder (or “whale”) who sold 340,000 LTC between Tuesday and Thursday. When major holders reduce their exposure, it can trigger further selling and amplify downward momentum in the market .
Technical Picture and Price Levels to Watch
Litecoin’s price action has been mixed. After a 7% drop last week and a retest of support at $77,19, LTC managed to recover and consolidate around $85. However, the Relative Strength Index (RSI) remains below the neutral 50 level, pointing to ongoing bearish momentum. If LTC fails to break above the $91,61 resistance, a renewed decline toward the $77,19 support zone is possible. Conversely, a close above $91,61 could open the door to a move toward $96,30 .
Market Context
While the broader crypto market has seen renewed risk appetite following geopolitical dƒevelopments, Litecoin’s on-chain signals suggest caution is warranted. Investors should monitor key support and resistance levels, as well as on-chain activity, to gauge the next move.
