LTC price hits multi-month lows despite continued increase in usage

Litecoin (LTC) has just fallen to its lowest level in over four months, losing nearly 12% over the past week. However, price volatility only reflects part of the overall picture.

Beyond technical charts, Litecoin still shows significant support and demand from the market.

LTC Retreats to Multi-Month Lows

On the daily timeframe, LTC dropped to its lowest since October and then experienced a slight rebound. Nevertheless, the overall trend remains bearish as the price is below key moving averages (MA) and has yet to regain the lost territory.

Source: TradingView Momentum indicators also show selling pressure dominates: RSI indicates strong selling, while MACD remains below zero, implying the downtrend has not truly ended. Volatility has increased, evidenced by multiple touches to the lower band of Bollinger Bands.

Institutional Acceptance Continues to Grow

From an application perspective, SBI VC Trade— a cryptocurrency exchange backed by SBI Holdings (Japan)—has recently added LTC to its digital asset lending portfolio.

Through the Lending Coin program, users in Japan can lend LTC to earn interest, placing Litecoin alongside popular assets like Bitcoin (BTC), Ethereum (ETH), and Ripple’s XRP.

Currently, the platform supports lending over 30 cryptocurrencies; adding Litecoin to the list is a positive sign, indicating growing confidence in this asset.

Usage Data Shows Platform Remains Resilient

According to CoinGate, in January, LTC was the third most used cryptocurrency for payments, accounting for 17.7% of total transactions—second only to Bitcoin and USD Coin (USDC).

Source: X Notably, this share increased from December’s 16.4%, showing a clear growth in its presence in payment activities.

Meanwhile, activity on Litecoin’s optional privacy layer, MWEB, also hit new highs. The amount of LTC locked into MWEB surged last month, with “peg-in” transactions reaching record levels.

Source: X In summary, although short-term market sentiment remains weak and prices face pressure, indicators of payment utility and network usage for Litecoin are still holding up quite steadily.