Litecoin News This Week — ChangeHero Digest

The "digital silver" narrative used to position Litecoin as Bitcoin's complement, but right now, it's tracking BTC into the abyss—and then some. Investing.com reports that Litecoin plunged 10.25% in a single day, marking its steepest one-day loss since early February. At $52.41, LTC is now hovering near multi-year lows, down nearly 60% from last year's peak and a staggering 87.52% from its December 2017 all-time high of $420. The sell-off isn't happening in isolation—Bitcoin tumbled past $67,000 support, Ethereum shed nearly 10%, and the entire crypto market is bleeding. But Litecoin's descent stands out. Its market cap has shrunk to just $4.08 billion (0.18% of the total crypto market), a far cry from its 2021 peak of $25.61 billion. The question now: is this capitulation setting the stage for a bottom, or is there more downside ahead?

Broader Market Carnage Dragging Down Litecoin

Litecoin didn't collapse in a vacuum. TradingView notes that macro and market factors are hammering crypto across the board. Risk aversion spiked after Kevin Warsh was tapped as the next Federal Reserve Chair, signaling potential policy uncertainty. Weak U.S. private payrolls for January added to jitters. Meanwhile, Bhutan's government offloaded Bitcoin holdings, and billions of dollars were yanked out of digital-asset investment products. The result? Bitcoin broke below critical support levels, dragging altcoins—including Litecoin—down with it.

According to data from Glassnode, more than 9.3 million BTC are now underwater at $67,400, the highest since January 2023. CryptoQuant research head Julio Moreno warned that Bitcoin could drop to $60,000, citing weak investor demand and BTC breaking below its 365-day moving average for the first time since March 2022. Analyst Lark Davis added that Bitcoin's daily RSI is the third worst in the last decade, nearly as bad as COVID-crash levels. When Bitcoin sneezes, altcoins catch pneumonia—and Litecoin is no exception.

Technical Breakdown: Support Zones Under Siege

Litecoin has been bleeding technically for weeks. Investing.com data shows LTC lost 18.96% over the past seven days, trading in a range between $52.41 and $66.41. Over the prior 24 hours alone, it swung from $52.41 to $59.34. The $50 level is now the line in the sand. TradingView identifies $50 as key support, warning that a deeper correction could drag LTC down to $40 (the June 2022 lows) or even $33 (last seen in March 2020). In a worst-case scenario, some analysts suggest Litecoin could drop as low as $30.

CCN's technical analysis paints a similarly grim picture. The asset is trapped in a descending channel with negative MACD momentum. However, there's a faint glimmer of hope: RSI, MFI, and CMF indicators, along with a fading MACD histogram, suggest selling pressure may be weakening. If Litecoin can bounce from the $58 zone, the next target is around $70 (with resistance near $70.20). Fail to hold, and the next stop is $41. Traders Union notes that LTC is testing critical support near $50—the lowest level since 2020—and a breakdown below $48 could accelerate the slide toward $40. Key resistance levels are stacked at $63.47, $71.23, and $79.15, with multiple failed attempts to reclaim the $63–$71 zone. A move above $75 would signal a potential reversal, but that feels like a distant hope right now.

MEXC highlights that Litecoin is near a long-term support zone aligned with a macro trendline, which could limit downside and suggest accumulation. But as of Tuesday, February 3, TradingView data showed LTC trading well below the 20-week, 50-week, 100-week, and 200-week EMAs. The $72–$75 range has flipped to resistance, and if $60 fails, the next leg down toward $50–$55 is in play.

Whale Activity and Retail Capitulation

Here's where things get interesting. BeInCrypto reports that whales have dominated Litecoin trading since late 2024, while retail participation has faded. Coinglass data shows the LTC Whale vs. Retail Delta has been mostly positive since Q4 2024, meaning large holders have been the primary buyers and sellers. According to Santiment data, whale transactions on Litecoin recently hit a five-week high, accompanied by a surge in network activity. That's a sign of renewed interest from big players, possibly accumulating at these lows.

But there's a catch. BeInCrypto also notes that Litecoin's open interest recently spiked, increasing liquidation risk if leverage is high. TradingView points out that Litecoin's break below $100 coincided with increased long liquidations, adding fuel to the downward spiral. FXEmpire adds that Litecoin futures open interest nearly doubled in five days (in LTC terms), and Binance's long/short account ratio rose from 66% to 70%, suggesting new futures positions are skewed long. That's a double-edged sword: if LTC bounces, overleveraged shorts could get squeezed. If it breaks down further, those longs are toast.

Trading volume tells a similar story. Investing.com reports that Litecoin's 24-hour trading volume hit $727.95 million (0.32% of total crypto volume). FXEmpire puts it slightly lower at $630 million, about 11% of circulating market cap. But here's the kicker: Artemis data shows weekly Litecoin trading volumes collapsed from $7.8 billion in early November to just $2.6 billion as of last week. That's a massive drop-off in liquidity, which amplifies volatility and makes sharp moves in either direction more likely.

On-Chain Strength Amidst Price Weakness

Despite the price carnage, Litecoin's on-chain fundamentals are holding up surprisingly well. TradingView notes that the Litecoin network surpassed 375 million transactions earlier this week. Traders Union adds that Litecoin processed over 60 million transactions in 2025 and its hashrate reached an all-time high of 3.34 PH/s. The network has maintained 100% uptime over its 14-year history, a testament to its reliability.

Yahoo Finance reports that while LTC has fallen roughly 55% since October last year, the average on-chain transaction value has continued to rise. That suggests real economic activity is still happening on the network, even if speculative interest has dried up. CoinGate data reveals that Litecoin accounts for 17.7% of payment transactions on the platform, behind only BTC and USDC. That share rose from 16.4% in December, signaling growing utility as a payment method.

Litecoin's optional privacy layer, MWEB (Mimblewimble Extension Blocks), is also seeing record adoption. Yahoo Finance notes that MWEB set a record for peg-ins, surpassing 400,000 LTC. MWEB adds privacy features like confidential transactions and stealth addresses, making Litecoin more attractive for users who value anonymity. The fact that adoption is growing during a price collapse suggests there's genuine utility being built here—not just hype.

Institutional Interest and ETF Inflows (Or Lack Thereof)

Litecoin's first U.S. spot ETF was approved and listed on Nasdaq in October 2025, a milestone Traders Union highlights as a key development. SoSoValue data shows that Litecoin ETFs saw daily net inflows of $144,500 on February 4, bringing cumulative net inflows since launch to $9.92 million. That's... not much. FXEmpire notes that the only SEC-approved spot LTC ETF had about $7 million in assets under management, and Wall Street has largely ignored it. Compare that to Bitcoin and Ethereum ETFs, which have pulled in billions, and it's clear institutional appetite for Litecoin remains lukewarm at best.

There are a few bright spots. Yahoo Finance reports that SBI VC Trade, under Japan's SBI Holdings, expanded its crypto lending services to include Litecoin. Japanese users can now lend LTC via the Lending Coin program to earn interest. The program supports more than 30 cryptocurrencies, including BTC, ETH, XRP, LTC, BCH, DOT, LINK, ADA, DOGE, and SHIB. Additionally, Traders Union notes that Lite Strategy purchased 929,548 LTC worth $100 million, a significant vote of confidence from a corporate treasury. MEXC also mentions that OKX introduced Litecoin perpetual futures on Saturday, January 31, adding another venue for traders to speculate on LTC's price movements.

Long-Term Catalysts and 2027 Halving

Looking beyond the current bloodbath, there are structural reasons to remain cautiously optimistic. Traders Union points out that Litecoin has a maximum supply of 84 million, with 91% already circulating. The July 2027 halving is expected to cut inflation from 1.8% to 0.9%, reducing new supply and potentially supporting higher prices if demand holds steady.

Another major development is LitVM, Litecoin's first Layer-2 chain. Traders Union explains that LitVM is built with Polygon's Chain Development Kit and brings Ethereum-compatible smart contracts to Litecoin, enabling DeFi and tokenized assets. The testnet launched in Q1 2026, and the mainnet is scheduled for Q2 2026. If executed well, LitVM could unlock a new wave of developer activity and use cases, positioning Litecoin as more than just a payment coin.

For context, CCN notes that Litecoin's Pi Cycle Top indicator is flashing caution. The 111-day moving average is approaching twice the 350-day moving average, but no crossover has occurred yet. That's a bearish signal if it happens, but it also suggests we're not at cycle-top euphoria—quite the opposite, actually. Traders Union offers a wide range of 2040 forecasts: median estimates target $500, conservative estimates sit at $200–$400, and bullish scenarios reach $700–$1,000. Those are long-term projections, of course, and assume Litecoin survives the current downturn and capitalizes on its technological upgrades.

The Bottom Line

Litecoin is in the fight of its life. The $50 support level is the final line of defense before a potential spiral toward $40 or even $30—levels that would mark a complete unraveling of the 2024–2025 rally. The macro backdrop is hostile, Bitcoin is bleeding, and Litecoin has been hammered harder than most of its peers. But there's a case for cautious optimism if you zoom out. Whale accumulation is ticking up, on-chain activity is strong, payment adoption is growing, and MWEB is seeing record usage. The July 2027 halving and the upcoming LitVM mainnet launch could provide the narrative catalysts needed to reverse sentiment.

The immediate price action, however, will depend on whether Bitcoin can hold its footing above $65,000. If BTC collapses toward $60,000, Litecoin will likely follow suit, potentially testing $40 or lower. If Bitcoin stabilizes and bounces, Litecoin could rally back toward $70, offering a short-term reprieve for overleveraged longs. The spike in open interest and whale activity suggests big players are positioning for a move—but which direction remains uncertain. For now, Litecoin is a high-risk, high-reward play. If you're a believer in its long-term fundamentals, these lows could be a generational entry point. But if you're risk-averse or trading on leverage, this is a market that will chew you up and spit you out. The bottom line: Litecoin is at a crossroads, and the next few weeks will determine whether it's capitulation or a bear trap.