Litecoin Price Drops Below $90 But Positive Indicators Suggest Q4 2025 Rally

Litecoin (LTC) has recently experienced a price decline below the $90 threshold. However, several market indicators and institutional interest suggest a promising outlook for the altcoin in the fourth quarter of 2025. The 90-day Spot Cumulative Volume Delta (CVD) has turned positive, signaling renewed buying momentum. Additionally, the anticipation of an LTC exchange-traded fund (ETF) approval could attract significant investor capital, further bolstering the potential for a strong rally in Q4 2025.

The recent shift in Litecoin’s 90-day Spot Cumulative Volume Delta (CVD) from negative to positive indicates a significant change in market dynamics. This metric, which compares taker buy and sell volumes, suggests that buyers are increasingly dominating the market. After a period of subdued activity since December 2024, this positive CVD implies that investors are accumulating LTC at current price levels, potentially setting the stage for upward momentum.

Market analysts highlight the growing likelihood of an LTC ETF receiving regulatory approval by October 2025. An ETF listing would enhance liquidity and open the doors for institutional investors who have been cautious due to regulatory uncertainties. This institutional influx could amplify LTC’s price action, especially when combined with favorable seasonal trends.

Historical price data shows that Litecoin typically experiences weaker performance during August and September, with average negative returns. However, this period of relative weakness is often followed by a robust recovery in Q4, particularly in November, which has historically yielded significant returns. This seasonal pattern suggests that the current price dip could represent a strategic accumulation phase ahead of a strong year-end rally.

Analyzing LTC’s daily price chart reveals a striking resemblance to its 2024 trajectory. The altcoin has been consolidating within a high-conviction demand zone, previously a launchpad for a breakout in late 2024. A decisive move above the descending trendline, coupled with reclaiming the 50-day and 200-day moving averages, would confirm a bullish reversal. Such technical validation often precedes significant price advances, reinforcing the case for a potential rally as Q4 2025 approaches.

Onchain data underscores a shift in investor behavior, with the positive Spot CVD aligning with increased taker buy activity. This behavioral change reflects growing confidence among traders and long-term holders. When combined with the anticipated ETF approval and seasonal tailwinds, these onchain signals strengthen the outlook for LTC’s price appreciation.

Litecoin’s potential resurgence is also influenced by broader cryptocurrency market trends. As Bitcoin and other major altcoins exhibit signs of stabilization and renewed interest, LTC stands to benefit from increased market liquidity and investor confidence. The altcoin’s historical correlation with Bitcoin’s performance suggests that positive momentum in the broader market could further catalyze LTC’s upward trajectory.

While Litecoin’s recent price dip below $90 may raise concerns, a confluence of positive Spot CVD readings, potential ETF approval, and strong seasonal patterns collectively point toward a favorable outlook for Q4 2025. Technical chart formations echoing last year’s successful breakout add further weight to this bullish thesis. Investors should monitor these key indicators closely, as current price levels may represent an opportune entry point ahead of a possible sustained rally.