Overall, Litecoin is strikingly bullish suggesting the start of a new market trend. For the first time since December 2024, its short term cumulative volume delta has turned positive. This change is indicative of a larger change in market sentiment. The cryptocurrency's current price structure mirrors its 2024 trajectory, and a potential Litecoin ETF could trigger institutional investor demand, aligning with Litecoin's historically strong Q4 performance.
Litecoin’s 90-day Spot Cumulative Volume Delta (CVD) is an indicator that tracks market buy vs sell pressure. After spending the last six months negative since December 2024, Litecoin’s Spot CVD flipped positive on Saturday, which shows the return of buyer demand. This change suggests that the selling pressure that has dominated the market for the past several months may be waning.
Litecoin just had an incredibly bullish run during Q1 of this year. Soon after, it moved into correction territory and remained under a falling trendline for all of Q2. When it dipped below $90 in recent weeks, it sparked panic selling among investors. This price weakness does not mean bad news is on the way. Rather, it has the potential to be a map for optimal accumulation strategy looking at historical context and possible future catalysts.
Either way, Litecoin’s price has returned to a key daily demand zone. This trapezoid used to be the launching pad for the breakout above in Q4 2024. August and September are usually the worst months for Litecoin. These months have an average return of −6.99% for August and −5.06% for September, since 2012. By contrast, November is the only month that has positive returns, with an average return of 94.79%. While that’s not reassuring, this seasonal pattern would point to the current price weakness being a temporary phase before a possible Q4 rally.
A prospective Litecoin ETF raises hopes among institutional investors, and it might be able to multiply their demand massively. This expectation dovetails nicely with Litecoin’s historically bullish Q4 performance. A breakout above the trendline would forge tremendous momentum for a new upswing. Moreover, a bullish reclaim of the moving averages would confirm this trend even more as we march towards Q4 2025.
Litecoin’s onchain buyer behavior is changing, not just short term, but bottoming to a continued rally to new yearly highs in Q4. If you look back at the price history, Q4 is typically a pretty strong quarter for Litecoin. Positive CVD, price history, and the looming ETF approval suggest a strong opportunity. Litecoin’s price sag may provide the perfect LTC accumulation opportunity.
