Litecoin (LTC) may continue to fall as selling activity reaches a three-month peak.

As of the time of writing on Thursday, Litecoin (LTC) is maintaining a stable status around the $85 mark, after recording an impressive bounce back of 6% over the past week. However, the on-chain signals are ringing early warning bells about a bearish trend. Specifically, investor take profit activities have surged to the highest level in three months, while "sleeping" wallets have unexpectedly become active again — a clear sign that selling pressure is gradually increasing. Notably, a large "whale" has dumped up to 340,000 LTC, further bolstering the negative outlook for the price of this cryptocurrency.

Three reasons why LTC may enter a 下行 trend

Litecoin (LTC) opened the week with positive momentum, bouncing back nearly 6% on Monday following news of a ceasefire between Iran and Israel — a factor that boosted risk appetite in the financial markets. After this breakout, the price of LTC stabilized around the $85 mark for the next two days and is currently still maintaining within this price range.

However, the on-chain data is sending the first signals indicating that bearish pressure may be forming.

Specifically, the Network Realized Profit/Loss index (Network Realized Profit/Loss – NPL) provided by Santiment witnessed a surge on Wednesday, reaching its highest level since the end of March. This development indicates that investors are actively taking profit, thereby significantly increasing selling pressure in the market.

NPL chart of Litecoin | Source: SantimentIn addition, the "Age Consumed" ( of Santiment is also sending negative signals. The spikes in this index indicate that tokens that were previously "hibernating" in wallets are starting to move — a development often associated with the formation of local tops or bottoms in the short term. For Litecoin, historical data shows that each time this index surges, it is accompanied by strong selling pressure, as investors transfer tokens from personal wallets to exchanges, causing prices to tend to adjust downward. The most recent increase occurred last Wednesday, raising concerns that LTC may be entering a new bearish cycle.

![])https://img-cdn.gateio.im/webp-social/moments-3abdc664abea2376fd11ebfdccbaeb87.webp(Litecoin Consumption Age Index | Source: SantimentNot stopping there, the supply distribution data from Santiment further reinforces the negative scenario. A whale wallet holding between 100,000 and 1 million LTC )the red line(has quietly dumped up to 340,000 tokens into the market within three days, from Tuesday to Thursday. This move indicates that whales are actively reducing their exposure to LTC — and may have directly contributed to the pressure causing the price to continue weakening.

![])https://img-cdn.gateio.im/webp-social/moments-12edb224cd1f60777ec6a2571b845ca8.webp(LTC Supply Distribution Chart | Source: Santiment## Litecoin Price Forecast: Bears Are Dominating

Last week, Litecoin )LTC( recorded a 7% drop, falling to a critical support level at $77.19 on Sunday. However, buying pressure quickly returned on Monday, helping the price bounce back significantly and stabilize around the $85 mark for the next two days. As of the time of writing on Thursday, LTC is still maintaining a sideways movement around this price range.

However, if it cannot close above the resistance at the 50% Fibonacci retracement level – equivalent to $91.61 – then the possibility of a deeper correction is entirely possible. In the negative scenario, LTC may turn around to retest the support area of $77.19.

![])https://img-cdn.gateio.im/webp-social/moments-f53ec227799c67e75a8aa92f1fb63be0.webp(Daily LTC/USDT Chart | Source: TradingViewThe Relative Strength Index )RSI( is currently still fluctuating below the neutral threshold of 50, reflecting the bearish trend dominating the market.

On the contrary, if LTC convincingly breaks through and closes above the $91.61 level, this coin could extend its bounce back, targeting the next resistance level at $96.30.

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