Litecoin price remains in a tight range this week as crypto investors position themselves for the new Trump era. While the LTC has a key catalyst in the potential ETF approval, there is a risk in that whales are dumping the token. So, is Litecoin a good investment?
Litecoin Price At Risk As Whales Sell
On-chain data shows that Litecoin whales continued to dump the coin as its price dropped by almost 20% from its highest level this year. The Santiment chart below reveals that Litecoin whales have been net sellers, which is often a negative sign for an asset. That’s because these whales are often seen as being more sophisticated and experienced investors. These whales sold at the top when the coin jumped to $141 last week.
Litecoin Whale Transactions
The other chart shows that the Network Realized Profit/Loss figure surged on the same day. These two charts mean that these whales sold their coins at the top and are yet to return with much vigor. That is a sign that they possibly expect the Litecoin price to drop further before restarting their accumulation.
Litecoin NRP Value
LTC Hash Rate And Transaction Count Have Dropped
In addition to whales selling, more onchain data shows that Litecoin’s hash rate has fallen, a sign that the network activity is lagging. The rate dropped from this week’s high of 1.94 TH/s to 1.83. It has moved below the 30-day average of 1.84 TH/s and the 30-day average of 1.97k TH/s.
Litecoin Hash Rate Drops
Indeed, the falling hash rate has coincided with the ongoing drop in the number of transactions in the network. The 7-day average of these transactions is 197.7k, higher than the current 190k.
LTC Price Forms 2 Risky Patterns
The value of LTC may be at risk of a deeper dive after forming a double-top-like chart pattern on the daily chart. This pattern is made up of two key parts: a twin peak (around $141.4) and a neckline (at $86). The pattern happens during an uptrend and is usually a bearish reversal sign.
LTC price has also formed a small bearish pennant pattern. This pattern has a long vertical flag pole and a small triangle pattern and is often followed by a breakdown.
Litecoin Price Chart
Litecoin Price Targets
Therefore, Litecoin remains at risk as long as it is below the double-top level at $141. In this case, the initial target will be at the neckline at $86.85, which is about 25% below the current level.
On the flip side, a move higher than $141 will invalidate the bearish outlook and point to a surge, potentially to $200. A likely catalyst for the bullish breakout will be the rising ETF approval odds.
LTC ETF Approval Maybe A Catalyst
On the positive side, Litecoin price has a potential catalyst in that the odds of a spot LTC ETF approval rose on Polymarket. Traders are giving it a 75% odd because Litecoin is similar to Bitcoin and the SEC does not see it as a security. An LTC ETF approval would likely lead to hype and potential inflows.
The post Litecoin Price Struggles As Whales Sell & Disappear, LTC Rebound Unlikely appeared first on CoinGape.
