Why did the price of LTC fall?

Litecoin (LTC) dropped 1.96% to $105 over the past 24 hours, underperforming the overall crypto market, which fell 1.12%. The main reasons include:

1. ETF Approval Delays – The SEC postponed its decision on Grayscale’s Litecoin ETF to October 2.
2. Technical Resistance – Litecoin’s price was pushed back at the $116 Fibonacci resistance level.
3. Whale Selling – Large holders sold over 500,000 LTC, worth about $58 million.
4. Market Shift – The Altcoin Season Index fell 7.58% as investors moved money into Bitcoin.

In-Depth Analysis

1. Regulatory Delays (Negative Impact)

Summary: The U.S. Securities and Exchange Commission (SEC) delayed decisions on several Litecoin ETFs, including Grayscale’s application (Blockworks). At the same time, the SEC approved new listing rules that remove some filing requirements, adding to uncertainty.

What this means:

• Investors had been optimistic about ETF approval, pushing LTC up 22.6% in the 90 days before the delay.
• The postponement until October caused some investors to sell in response to the news.
• The SEC’s new procedures have made it less clear when approvals will happen.

What to watch: The October 2 deadline for Canary’s LTC ETF and Grayscale’s decision expected on October 10.

2. Technical Resistance (Negative)

Summary: Litecoin struggled to rise above the 23.6% Fibonacci retracement level at $116.08, measured from its July high of $120.79.

Key indicators:

• RSI (14-day): 42.9, which is neutral but below the bullish threshold of 50.
• MACD: Shows a bearish crossover, with the MACD line at -2.48 below the signal line at -1.8.
• Immediate support is at $101.30, the low from July.

3. Whale Activity & Market Sentiment (Mixed Signals)

Summary: Large Litecoin holders sold more than 500,000 LTC (about $58 million), while daily active addresses on the network increased to 375,000 (CCN).

What this means:

• Big investors took profits, balancing out buying interest from smaller investors hopeful about ETFs.
• The rise in active addresses suggests Litecoin is still being used actively, but low liquidity made price swings more volatile.
• Derivatives data shows a bearish trend, with the MACD histogram at -0.68731, the weakest since August 25.

Conclusion

Litecoin’s recent price drop reflects uncertainty around regulatory approvals, technical resistance levels, and a general weakness in altcoins. However, the increase to 375,000 daily active addresses points to ongoing use of the network.

Key point to watch: Can Litecoin hold the $101.30 support level ahead of the October ETF decisions? If it falls below this, it may test the important $100 psychological level. On the other hand, continued growth in network activity could help Litecoin recover.

What could affect the price of LTC?

Litecoin’s price is influenced by hopes for ETF approval and activity from large holders.

1. ETF Approval Potential – The SEC’s decisions in October could open the door for more institutional investment.
2. Large Holder Movements – Big Litecoin holders recently sold $58 million worth, adding some price swings.
3. Privacy Upgrades – New features like MimbleWimble may boost Litecoin’s appeal for privacy-focused users.

In-Depth Look

1. ETF Progress & Regulatory Changes (Positive Outlook)

Summary: The U.S. Securities and Exchange Commission (SEC) has simplified the process for approving crypto ETFs, including those for Litecoin. Instead of a lengthy 19b-4 filing, companies like Grayscale and Canary Capital now only need to file an S-1 form, with decisions expected starting October 2 (CoinJournal). Experts believe there’s over a 90% chance these ETFs will be approved, based on similar Bitcoin ETF approvals.

What this means for Litecoin: If approved, Litecoin could see a surge in institutional investments, similar to Bitcoin’s price jump after its ETF launch in 2024. However, if approvals are delayed or denied (which seems unlikely), Litecoin’s recent gains might reverse.

2. Large Holder Activity & Market Impact (Mixed Effects)

Summary: Wallets holding 1,000 or more Litecoin moved over 500,000 LTC (worth about $58 million) in late September, according to CoinMarketCap. While some view this as profit-taking, long-term holders still control 75% of Litecoin’s circulating supply.

What this means for Litecoin: Activity from these “whales” can cause short-term price swings but tends to stabilize the market over time. If Litecoin’s price breaks above $117, it could reach $124. On the other hand, falling below $105 might lead to testing support at $100.

3. Adoption & Network Improvements (Positive Outlook)

Summary: Litecoin’s MimbleWimble Extension Block (MWEB) privacy feature now protects over 164,000 LTC. Institutional investors like MEI Pharma (with a $100 million Litecoin allocation) and Luxxfolio (holding over 20,000 LTC) show growing trust in the network (CoinMarketCap). Additionally, integration with Telegram Wallet is making Litecoin easier for everyday users to access.

What this means for Litecoin: These privacy and usability upgrades could set Litecoin apart from Bitcoin by offering faster transactions and privacy that still meets regulatory standards. This makes Litecoin attractive for users and businesses looking for secure, compliant digital payments.

Conclusion

Litecoin’s price will likely be shaped by the SEC’s ETF decisions in October, the trading behavior of large holders, and the adoption of its privacy features. While short-term price swings are expected, growing institutional interest and network improvements suggest a positive long-term outlook. Will Litecoin’s ETF approval finally boost its reputation as “digital silver”? Keep an eye on October 2 for the SEC’s first decision.

What are people saying about LTC?

Litecoin’s outlook is a mix of optimism about upcoming ETF approval and cautious watching of important price levels. Here’s what’s trending:

1. $1 trillion network value gap vs. price – positive sign
2. $114.50 price level key for next move – uncertain
3. 90% chance of ETF approval in October – very positive

Deep Dive

1. @MASTERBTCLTC: $1 trillion network value gap is a good sign

“Litecoin is priced like Bitcoin was in 2016… network value model points to $1 trillion… gap should close in 6–9 months.”
– @MASTERBTCLTC (12.6K followers · 89K impressions · 2025-09-16 14:34 UTC)
View original post
What this means: This suggests Litecoin might be undervalued compared to Bitcoin’s past performance. If Litecoin adoption grows, its price could rise significantly, similar to Bitcoin’s earlier growth.

2. @cryptoWZRD_: $114.50 price level is a key test

“Litecoin closed without a clear direction… needs to break above $114.50 to start a rally… tends to follow Bitcoin’s moves.”
– @cryptoWZRD (8.3K followers · 45K impressions · 2025-08-31 00:48 UTC)
[View original post](https://x.com/cryptoWZRD/status/1961954243083932097)
What this means: This is a mixed signal. Litecoin’s short-term price depends heavily on Bitcoin’s momentum. The $114.50 level is crucial—breaking above it could lead to gains, but failing to do so might mean more sideways or downward movement.

3. @ACInvestorBlog: October ETF approval is a strong positive catalyst

“October 2025 is a key month… 90% chance Litecoin ETF gets approved… MEI Pharma is positioning with $100M treasury allocation.”
– @ACInvestorBlog (23.1K followers · 312K impressions · 2025-09-03 15:46 UTC)
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What this means: ETF approval would likely bring more institutional investors to Litecoin, similar to what happened with Bitcoin in 2024. MEI Pharma’s large investment shows growing corporate confidence in Litecoin.

Conclusion

The overall view on Litecoin is cautiously optimistic. There’s excitement about the potential ETF approval and the network’s value growth, but some hesitation due to important price levels that need to be broken. Traders are focused on October 2025 for regulatory news, while technical analysts watch the $105–$115 range for signs of a breakout. Keep an eye on the SEC’s ETF decision timeline and how Litecoin’s price moves in relation to Bitcoin’s next big move.

What is the latest news about LTC?

Litecoin is navigating a mix of excitement around ETFs (exchange-traded funds) and changing regulations as important October deadlines approach. Here’s a quick summary of the latest news:

1. SEC Simplifies Litecoin ETF Approval Process (September 29, 2025) – Makes it easier and faster to get ETFs approved by cutting unnecessary paperwork.
2. Tuttle ETF Adds Litecoin Exposure (September 30, 2025) – Includes Litecoin in a fund that tracks political trading activities.
3. Altcoin ETF Decisions Start This Week (September 29, 2025) – The SEC will begin ruling on Litecoin ETFs starting October 2.

In-Depth Look

1. SEC Simplifies Litecoin ETF Approval Process (September 29, 2025)

What happened:
The U.S. Securities and Exchange Commission (SEC) removed a specific filing requirement (called 19b-4) for spot crypto ETFs, including those for Litecoin. Now, companies like Grayscale and Canary Capital only need to complete a simpler registration process (S-1). Experts see this as a positive step, not a rejection, with possible approvals as soon as October 2.

Why it matters:
This change is good news for Litecoin because it lowers regulatory barriers, putting Litecoin on a similar level as traditional commodities like gold and oil. If approved, it could attract more institutional investors. However, the approval timeline for XRP ETFs suggests there might still be delays if the SEC requires futures-based compliance. (CoinJournal)

2. Tuttle ETF Adds Litecoin Exposure (September 30, 2025)

What happened:
Tuttle Capital is launching the Government Grift ETF (GRFT), which includes Litecoin alongside assets linked to former President Trump. This fund tracks trading activities of members of Congress and companies connected to political influence.

Why it matters:
This is neutral for Litecoin’s value because the fund’s focus is more on political themes than Litecoin’s core strengths. Still, being part of a traditional finance (tradFi) product could introduce Litecoin to new investors. Tuttle already offers leveraged Litecoin products, showing some institutional interest. (Cointelegraph)

3. Altcoin ETF Decisions Start This Week (September 29, 2025)

What happened:
The SEC has deadlines in October to decide on 16 crypto ETFs, starting with Canary Capital’s Litecoin ETF on October 2. Analysts believe approvals could spark renewed interest in altcoins like Litecoin.

Why it matters:
This is cautiously optimistic for Litecoin. ETF approval would confirm its status as a recognized commodity. However, short-term price swings are expected—historically, prices often dip after the initial approval news. Traders are watching the $105 price level as a key support point. (Yahoo Finance)

Conclusion

Litecoin’s future this fall depends heavily on ETF approvals and regulatory developments. October will be a critical month to see if easier approval processes lead to steady demand from big investors or if short-term traders will shape the market after key deadlines.

What is expected in the development of LTC?

Litecoin is moving forward with some important updates:

1. Nexus Wallet Transition (December 31, 2025) – Litewallet will be discontinued, and users will switch to the new Nexus Wallet.
2. Litecoin Ecosystem Fund (Q4 2025) – A fund will support startups and developers building on Litecoin.
3. Layer-2 Wallet Beta (Q2 2026) – A new wallet with advanced features like smart contracts and merchant tools will be launched.

In-Depth Look

1. Nexus Wallet Transition (December 31, 2025)

What’s happening: The Litecoin Foundation announced that Litewallet will be retired at the end of 2025. Users will need to move to the Nexus Wallet, which offers better features such as Flexa payment support, improved privacy through MWEB, and SegWit technology for faster transactions.
Why it matters: This change could be good for Litecoin (LTC) because a smooth transition might keep users engaged and attract new ones. However, if there are technical problems or delays in making Nexus compatible with all devices, it could cause frustration.

2. Litecoin Ecosystem Fund (Q4 2025)

What’s happening: Luxxfolio Holdings plans to launch a fund in late 2025 to provide grants to startups and developers working on Litecoin projects. Initially, up to five projects will receive support, and a summit is planned for 2026 to bring the community together (Luxxfolio).
Why it matters: This fund could help Litecoin grow by encouraging new ideas and applications. The impact depends on attracting talented developers and promising projects. If interest is low, the fund’s effect might be limited.

3. Layer-2 Wallet Beta (Q2 2026)

What’s happening: Litecoin is partnering with LitVM and Litecoin Computer to release a beta version of a wallet with Layer-2 features by mid-2026. This means the wallet will support programmable functions like smart contracts, while keeping Litecoin’s fast and low-cost transactions (Luxxfolio).
Why it matters: If successful, this could open up new ways to use Litecoin, making it more versatile. However, delays in development or low user adoption after launch could limit its success.

Conclusion

Litecoin’s upcoming plans focus on making the network easier to use (with the Nexus Wallet) and expanding its capabilities (through Layer-2 tools and funding). While not part of the official roadmap, other factors like pending ETF approvals and companies like MEI Pharma investing $100 million in Litecoin could boost its growth. The big question is whether Litecoin’s focus on practical payment solutions and programmable features will help it stand out against competitors with flashier marketing.

What updates are there in the LTC code base?

Litecoin’s software received major updates in 2024 and 2025, focusing on improving privacy, scalability, and the ability to work with other blockchains.

1. MWEB Full Node Support (May 2022) – Added privacy features using MimbleWimble technology.
2. LitVM Layer-2 Launch (May 2025) – Introduced smart contracts compatible with Ethereum, powered by zero-knowledge rollups.
3. MWEB Validation Milestone (July 2025) – Over 90% of Litecoin nodes now support private transactions.

Deep Dive

1. MWEB Full Node Support (May 2022)

Overview: Litecoin Core version 0.21.2 included full support for MWEB (MimbleWimble Extension Block), which allows users to make confidential transactions that hide amounts and participants.

This update changed how Litecoin stores transaction data, so node operators needed to resync their systems after upgrading. It also added new tools for analyzing MWEB transactions, like mweb_header and mweb_amount.

What this means: This is a positive development for Litecoin because it offers optional privacy features that comply with regulations and don’t slow down transactions. Users get more control over who can see their financial activity. (Source)

2. LitVM Layer-2 Launch (May 2025)

Overview: LitVM is a Layer-2 solution built on zero-knowledge proofs that brings Ethereum-compatible smart contracts to Litecoin. It uses technology from BitcoinOS and Polygon’s CDK to make this possible.

The update also enables secure asset transfers between Bitcoin, Cardano, and Litecoin without relying on centralized intermediaries.

What this means: This is a cautiously optimistic development. It expands Litecoin’s capabilities into decentralized finance (DeFi) but adds complexity. Developers can now create decentralized apps (dApps) using Litecoin assets, which could attract new users and use cases. (Source)

3. MWEB Validation Milestone (July 2025)

Overview: More than 90% of Litecoin nodes are now validating MWEB blocks, with over 164,000 LTC held in private addresses.

This shows strong community support for Litecoin’s privacy features, supported by improvements in how Litecoin processes transactions and shares data across the network.

What this means: This is a positive sign, indicating that miners and users trust Litecoin’s privacy technology. It strengthens Litecoin’s position as a cryptocurrency focused on fast, private payments. (Source)

Conclusion

Litecoin’s recent updates focus on enhancing privacy (MWEB), enabling smart contracts (LitVM), and improving interoperability with other blockchains. While MWEB has seen widespread adoption, the success of LitVM depends on developer interest. The key question is how Litecoin will maintain its reputation as “digital silver” while managing the added complexity of Layer-2 solutions.