Litecoin (LTC) saw a 4% gain in the early Asian session on Wednesday, recovering from a recent three-day market downtrend. Despite the price bump, the underlying market fundamentals for the Bitcoin fork remain cautiously neutral.
Key Cautionary Signals:
- Selling Pressure: Recent price action has triggered increased selling activity. Santiment data shows that as the total supply of LTC coins in profit dropped to 57%, investors who bought within the last two months engaged in a mix of profit-taking and loss realization. Historically, a continued decline in this metric can lead older holders to also begin selling.
- Weak Spot ETF Demand: US-based spot Litecoin ETFs have failed to gain traction since their launch in October, attracting only a cumulative net inflow of $7.26 million. Currently, the only available product is Canary’s LTCC.
- Subdued Derivatives Market: The LTC futures market is showing signs of weakness. Negative funding rates have flashed twice in the past two days, suggesting short traders are gaining dominance. Although Open Interest has slightly recovered to 5.57 million LTC, it is still significantly below the 8.80 million LTC leverage-flush levels seen before October 10th.
Price Outlook:
LTC successfully bounced off the $90.2 support level but is now encountering resistance near $95.4. A sustained breakout above this $95.4 resistance would open the door for a test of the next major hurdle, which is a confluence of the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs).
November 2025, Cryptoniteuae
📧 The Gulf reads Cryptonite first
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