Litecoin has experienced a significant decline in its price recently, attributed mainly to widespread selling across the cryptocurrency market. Currently, Litecoin (LTC) is trading around $109, which marks a 25% drop from its peak this year. This downturn comes after Bitcoin’s price dipped below $100,000 for the first time in two weeks, reflecting a broader market weakness.
However, amidst this turbulence, Grayscale Investments has seized the opportunity to accumulate more Litecoin at a discounted price. Data from CoinGlass reveals that Grayscale purchased 2,230 LTC in one day, bringing their total holdings to more than 41,100 coins over the past month. This accumulation now totals over $220 million in Litecoin.
One of the most intriguing aspects of Grayscale’s strategy is the potential for a spot Litecoin ETF application, anticipated in 2025. Eric Balchunas, a leading ETF analyst at Bloomberg, has noted that an LTC ETF could find a favorable path to approval due to its similarities with Bitcoin. If the SEC views Litecoin favorably, it could trigger a surge in its price, making it a hot topic for investors.
In other positive news, Litecoin’s hash rate has reached an all-time high of 1.66 TH/s, indicating a surge in mining activity. This rise in computational power is a healthy sign for the network, which is crucial for its overall performance and stability. Additionally, the number of Litecoin addresses holding balances has remained steady, with over 8 million users actively engaged.
From a technical perspective, indicators suggest that Litecoin might be poised for a recovery. The $103 level serves as a critical support point, as it corresponds to the lowest price on December 9. Moreover, Litecoin remains above the 50-day moving average, providing further reassurance to traders. A significant price movement above $112.40 could confirm a bullish trend, lifting it toward the yearly high of approximately $150. If the market maintains its momentum, Litecoin could even challenge the $200 mark.
On the flip side, if Litecoin slips below the psychological support at $100, it could indicate that a more significant downturn is imminent, potentially pushing it back toward the $90 level.
As for frequently asked questions:
- Why is Grayscale buying Litecoin? Grayscale appears to be accumulating Litecoin in anticipation of filing for a spot ETF listing in 2025, coinciding with a new SEC composition.
- Will the Litecoin price rebound? While the future is uncertain, Litecoin possesses solid technical and fundamental factors that could support a rebound shortly.
- How high can LTC price get? A plausible scenario suggests that Litecoin may recover to test its year-to-date high near $150.
In light of these developments, investors are closely watching to see if Grayscale’s large-scale buying will pave the way for Litecoin’s resurgence. With strong fundamentals and growing institutional interest, many hope to see LTC rise once again, bringing more excitement to the cryptocurrency community.
