Litecoin (LTC) has slipped below the $90 mark, currently trading around $90.27, raising concerns about near-term weakness. However, a closer look at fundamentals and onchain data suggests the tide may soon turn in favor of the bulls.
A notable bullish signal comes from the 90-day Spot Cumulative Volume Delta (CVD), which tracks the net balance of buy versus sell pressure. After trending negative or neutral since December 2024, the Spot CVD turned positive over the weekend, pointing to a renewed “taker buy dominant” phase. This means market participants are stepping in to accumulate LTC at current levels, supporting a constructive outlook.
Adding to the bullish thesis is positive sentiment surrounding a potential Litecoin ETF. Such approval would mark a historic milestone for Litecoin, potentially unlocking new flows from institutional investors and expanding retail exposure to the altcoin.
Historically, Litecoin tends to underperform during August and September, with average returns of -6.99% and -5.06%, respectively, since 2012. However, the fourth quarter has traditionally been far stronger, with November delivering an average return of +94.79%. If an ETF approval aligns with this seasonal pivot, it could act as a powerful catalyst for an end-of-year rally.
Technically, LTC’s daily chart is showing similarities to its 2024 price pattern. Following a robust rally in Q1, LTC entered a correction and traded below a descending trendline during Q2. Recently, the price has revisited a high-conviction daily demand zone, which served as a strong base for breakouts last year.
If accumulation within this zone continues, a breakout above the descending trendline, along with reclaiming the 50-day and 200-day moving averages, could confirm a bullish reversal. This is reminiscent of late Q3 2024, when LTC’s price action flipped strongly bullish and set the stage for new yearly highs.
While current price weakness might spook some traders, the combination of strengthening onchain buy signals, a high-probability ETF approval window, and familiar technical setups suggests Litecoin could be in a strategic accumulation phase — setting up a strong Q4 performance if history repeats.
July 2025, Cryptoniteuae