The cryptocurrency market is experiencing a significant sell-off, with nearly $250 million liquidated over the past 24 hours. Among the affected assets, Litecoin (LTC) has lost bullish momentum, now trading at $123.31 after a 3% drop in the past day. The growing selling pressure raises concerns about Litecoin’s ability to sustain support above the $120 mark, prompting speculation about a possible dip below $100.
Is Litecoin Headed for a Drop Below $100?
#Litecoin $LTC faced rejection at the $135 resistance, which could lead to a pullback toward support at $98! pic.twitter.com/UchvWgc6G8
— Ali (@ali_charts) February 23, 2025
Crypto analyst Ali Martinez has identified a concerning pattern in Litecoin’s price action. A parallel channel on the daily chart suggests that LTC may continue its downward trajectory. The asset has already formed a double-top reversal from its overhead resistance and is currently hovering near $115—its mid-line support.
The lower boundary of the parallel channel sits at approximately $98, which could become the next target if selling pressure persists. If the bearish trend strengthens, Litecoin may break below the psychologically significant $100 level, signaling a deeper negative cycle for the cryptocurrency.
Bearish Sentiment in the Derivatives Market
Traders in the derivatives market are increasingly leaning bearish on Litecoin. The long-to-short ratio currently stands at 0.9117, indicating that short positions are growing relative to long ones. However, leading exchanges like Binance and OKX still show bullish positioning among top traders.
Meanwhile, total liquidations in the past 24 hours have reached $3.23 million. Bulls have faced $2.79 million in liquidations, whereas shorts have lost a relatively minor $440,010. Despite this bearish activity, Litecoin’s open interest-weighted funding rate has risen to 0.0024%, suggesting that some traders are willing to pay a premium to maintain their long positions.
Litecoin Network Growth Points to Strength
On-chain data from IntoTheBlock reveals that Litecoin’s network activity is expanding. The total number of addresses has surged to 8.24 million, with a 30-day average of 8.15 million. Additionally, Litecoin’s transaction volume has skyrocketed from $3.74 billion to $11.37 billion over the past six months.
Also Read: Litecoin Whales Accumulate 1M LTC as ETF Optimism Fuels Bullish Breakout
While Litecoin faces near-term bearish pressure, its growing network adoption suggests long-term strength. If LTC fails to hold support at $115, a test of the $98 level is likely. However, a recovery above $138 could reignite bullish momentum, making current levels a key zone for traders to watch.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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