Litecoin Price Forecast: LTC Slips Below $75 as Dormant Wallet Activity Stirs Selling Pressure

Litecoin (LTC) price fell below $75 on January 15, 2026, after failing to break through a key resistance zone. The coin declined more than 6% since Saturday, with technical indicators reinforcing bearish momentum. Market observers point to rising activity among dormant wallets as a significant contributor to the recent sell-off.

Technical analysis suggests further downward movement for LTC. The Relative Strength Index (RSI) on the daily chart is at 37, below the 50 neutral level and indicating oversold conditions. Additionally, the Moving Average Convergence Divergence (MACD) showed a bearish crossover on Monday, with red histogram bars expanding below the neutral level.

The long-to-short ratio for LTC, currently at 0.78, reflects bearish sentiment. This ratio, which is below one, shows that more traders are betting on price declines. Historical data from Santiment's Age Consumed index also indicates that spikes in this index often precede downward price movement.

Why the Move Happened

Dormant wallet activity has historically been a reliable signal for short-term market reversals. The Santiment data shows a recent spike, indicating that tokens held in long-term wallets are being moved to exchanges, increasing selling pressure. This aligns with past trends where similar spikes led to price corrections. The most recent uptick in wallet activity occurred on Saturday, signaling a potential downtrend.

The 50-day Exponential Moving Average (EMA) at $81.79 also became a key resistance level that LTC failed to break through. The rejection from this level contributed to the recent decline. If LTC continues to fall, the next significant support level would be the April 9 low of $66.51.

How the Market is Reacting

The broader cryptocurrency market has shown mixed reactions to LTC's decline. However, Litecoin's movement is being closely monitored by traders and investors due to its role as one of the leading altcoins. The coin's technical indicators suggest that the bearish trend may continue in the short term.

Market observers are watching closely for a potential rebound. If LTC manages to reclaim the $77.19 weekly resistance level, it could signal a recovery in the near term. This level is considered crucial for determining whether the downward trend will stabilize.

What Investors Should Watch Next

Investors are advised to monitor the key resistance and support levels for LTC. The daily chart shows that the coin has tested the $80.64 support zone, and the Relative Strength Index (RSI) is near the neutral zone. While buyers still hold some influence, the momentum is gradually shifting in favor of sellers.

Analysts suggest that if LTC fails to hold above $80.33, the coin could see further declines toward $75.19 or even $71.78. On the other hand, a successful reclaim of the $84.84 resistance level would indicate a potential shift in momentum back to the buyers. This could pave the way for LTC to test higher resistance levels at $96.12 and $103.64 according to analysis.

The coming weeks will be crucial for LTC as it tests these levels. The cryptocurrency's price direction will largely depend on whether buyers can successfully defend the key support zones or if sellers regain control. Investors are encouraged to keep a close eye on both technical indicators and market sentiment as the coin moves through this critical period.