Litecoin (LTC) has witnessed a significant drop, falling below the $100 mark, stirring discussions among investors and market analysts. This decline comes after a brief period of optimism where LTC saw its value surge past $100, hitting a 10-month high on 12th March. 

However, with the bears seizing market control, the LTC price has retracted to an intra-day low of $84.35, where support was established before rebounding to $85.77 at press time. The 24-hour trading volume for Litecoin, up 64%, stands at a substantial $1,048,548,265, highlighting the vibrant activity surrounding this cryptocurrency.

LTC/USD 24-hour price chart (source: CoinMarketCap)

Concurrently, the current market cap of Litecoin is valued at $6,373,833,395, placing it 20th in the CoinMarketCap rankings. Despite the dip, a considerable amount of LTC, approximately $400 million, remains on the cusp of profitability, pending a rebound above the $100 threshold. This situation has led to a notable shift in LTC's distribution, with a substantial portion transitioning from short-term traders to mid-term holders, signaling a growing confidence among investors.

Address Activity and Supply Movement

Analysis of Litecoin address distribution reveals a complex landscape of investor behavior. Nearly 351,000 investors are caught in a state of anticipation, having purchased LTC when prices hovered between $94 and $101. This cohort now finds their investments in a precarious position due to the recent price fluctuations. However, the resilience among these investors is palpable, with many opting to hold onto their assets, awaiting a market turnaround.

LTC/USD Addresses Distribution (Source: Intotheblock)

The movement of LTC supply into the wallets of mid-term holders, also known as Cruisers, is a noteworthy development. These investors, who typically hold onto their assets for periods ranging from a month to a year, are less inclined to sell in the short term. This shift is evidenced by the transfer of nearly 2 million LTC, valued at around $190 million, into their possession in just the past few days.

Should the market conditions align favorably, and LTC manages to breach the $104 mark, a significant portion of the current supply could turn profitable. This potential upturn, however, remains contingent on the ability of LTC to establish and maintain support levels above the critical $100 mark.

LTC/USD Technical Analysis

On the LTCUSD, the Rate of Change (ROC) is trending downward with a rating of 0.40, indicating that the price is dropping at a slower rate than in prior times. If the ROC falls further below zero, it might suggest a more serious drop in price momentum. The ROC is a useful instrument for traders to assess the rate at which prices change, revealing possible buying or selling opportunities. 

LTC/USD 24-price chart (source: TradingView)

Consequently, traders should be cautious when the ROC is declining, as it may signal a weakening trend that could result in further price decreases.

Furthermore, the declining Coppock Curve level of 35.1460 indicates that the market's velocity is slowing. If the Coppock Curve continues to fall, it might signal a move to a negative trend. This pattern is consistent with the declining ROC, underlining the level of caution that traders should use in their decision-making process.