Litecoin price is trading within a descending triangle amid low demand.
Activity on the Litecoin network has fallen, which is bearish for the price.
Selling pressure rises as LTC could drop to the bear market support floor.
At the beginning of the year, Litecoin’s (LTC) price attempted to hit. $200. But it faced rejection as soon as it reached $138.
This decline has now made the price action worse with LTC struggling to exit a stubborn bearish pattern. With the current outlook, it appears that Litecoin price could struggle to trade below $100.
As of this writing, Litecoin price trades at $112.25. This value represents an 18% decline from the peak it reached on Jan. 17.
A descending triangle refers to a bearish pattern formed when a descending upper trendline converges with a second, flatter horizontal trendline.
In most cases, this patterns indicates that the downtrend is likely to extend downward. With LTC still trading within the descending triangle on the 4-hour chart, the coin price is likely to undergo a correction.
Should the trend remain the same, then Litecoin price might fail to rise to the 121.08 resistance. Besides that, the cryptocurrency might also find it challenging to hold the support at $111.99.
In that scenario, a decline below $100 could happen in the short term.
From an on-chain standpoint, there has been a decline in the number of active addresses on the Litecoin network. Active addresses represent the number of unique wallets sending and receiving coins on a blockchain
When it increases, it is a bullish sign, indicating that price can increase. On Jan. 18, Litecoin active addresses was over 450,000.
However, today, that figure has dropped below 400,000. If this number continues to decline, then LTC value might continue to fall.
On the daily chart, Litecoin price hit higher highs between November 2024 and January this year. But as of this writing, LTC has dropped below those peaks, hinting at an extended downturn.
According to the same chart, the Chaikin Money Flow (CMF). The CMF is a technical indicator that measures the level of accumulation or distribution around a cryptocurrency.
When the indicator’s reading rises and is positive, it indicates rising buying pressure. If sustained, this could drive the price higher.
Meanwhile, as of this writing, the CMF has decline to the negative region. This indicates an increase in selling pressure.
Should the reading continue to fall, then LTC price might drop below $100. If this happens, Litecoin price might drop to the 0.236 Fibonacci retracement level at $82.02.
However, if LTC breaks above the falling trendline, this trend might reverse. In that scenario, Litecoin price might jump to the 0.786 Fibonacci level at $128.66. If sustained, the price might also climb to $150.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
