Litecoin price has fallen sharply as large holders step back and smaller buyers fill the gap.
The coin has slipped 5.35% in 24 hours, underperforming the broader market’s 3.39% decline.
Even so, price continues to lean on a well-worn support trendline that bulls have defended repeatedly.
Litecoin whales step back, retail bids prop up support
At press time, LTC traded around $115 after a failed move above the $121 pivot as whales cashed out their profits.
The pullback leaves the price roughly 7% lower on the week and well beneath the May 2021 all-time high.
Notably, the intraday range has tightened after the rejection, with the 24-hour band marked between roughly $116 and $122.
While whales ease off, retail participation has increased, with order books showing heavier accumulation in tickets under $1 million.
Moreover, CryptoQuant’s derivatives heat map points to rising pockets of activity, suggesting volatility could be brewing.
Technically, Litecoin has bounced off its ascending trendline five times. Each tag drew in dip buyers and steadied the tape.
Furthermore, the Stochastic RSI is drifting toward oversold territory, which often precedes a short-term reversal when support holds.
ETF flows favour ETH, not LTC
Capital rotation has also weighed on sentiment.
Litecoin investment products have seen about $0.4 million in outflows, while the listed Ethereum ETFs have drawn roughly $2.9 billion in inflows.
As a result, institutional attention is skewed toward ETH and away from second-tier altcoins like Litecoin.
Additionally, Grayscale’s LTC ETF application has faced another delay to October 10.
The postponement has dampened near-term conviction and helped push correlation with ETH down to 0.62 from 0.89 last week.
Therefore, LTC is trading more on its own tape, without the usual tailwinds from ETH strength.
Miners selling into strength as difficulty climbs
Turning to the Litecoin Network, the mining difficulty notched a record high of 97.15 million last week, which supports the long-term security story.
However, hashrate has eased by about 2.3% over the week, and miners reportedly sold roughly 65% of daily rewards versus about 45% in July.
Consequently, net supply hitting exchanges likely increased during the drawdown.
Even so, cumulative volume delta over 90 days has turned positive, hinting that strategic buyers have been accumulating sub-$110.
Therefore, longer-horizon wallets may be absorbing weakness while shorter-term players de-risk.
Key LTC price levels to watch
The $116–$120 zone has flipped into a critical resistance after several failed retests.
However, the immediate line in the sand sits lower at $112, which aligns with a 61.8% Fibonacci retracement near $113.
A clean break under that shelf could trigger stops toward $107 and, in extension, $97.
On the upside, bulls want a decisive reclaim of $121 to neutralise the latest breakdown.
A sustained push above $130 would strengthen the case for a run at $139, which marks a Fibonacci extension and a visible liquidity pocket.
Beyond that, prior studies still float $140–$150 as stretch targets if volume expands and overhead supply thins.
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