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LTC hits multi-month lows, yet Litecoin usage keeps climbing – Explained

LTC hits multi-month lows, yet Litecoin usage keeps climbing – Explained

AMBCryptoAMBCrypto2026/02/05 02:03
By:AMBCrypto

Litecoin has slipped to its lowest level in more than four months, falling nearly 12% over the past week. But price action is only part of the story.

Away from the charts, Litecoin continues to see great support and demand.

LTC slides to multi-month lows

On the daily chart, LTC dropped to its lowest level since October before showing a small bounce. The greater trend is bearish, with prices trading below key MAs and struggling to reclaim lost ground.

LTC hits multi-month lows, yet Litecoin usage keeps climbing – Explained image 0

Source: TradingView

The RSI showed heavy selling, while the MACD stayed negative – downside momentum has yet to fully fade. Volatility increased, with price repeatedly hitting the lower Bollinger Band.

Institutional adaption is increasing

SBI VC Trade, a crypto exchange backed by Japan’s SBI Holdings, has recently added Litecoin [LTC] to its crypto lending offerings.

Through its Lending Coin program, users in Japan can now lend Litecoin to earn interest, placing it alongside established assets such as Bitcoin [BTC], Ethereum [ETH], and Ripple’s XRP [XRP].

The platform already supports lending for more than 30 cryptocurrencies, and Litecoin’s inclusion is a nice show of confidence.

What’s more?

LTC hits multi-month lows, yet Litecoin usage keeps climbing – Explained image 1

Source: X

Data from CoinGate showed LTC was the third most used cryptocurrency for payments in January, accounting for 17.7% of transactions. That puts the coin just only behind Bitcoin and USD Coin [USDC].

That share was also higher than in December, back when, it was 16.4%; the number now is a considerable growth.

LTC hits multi-month lows, yet Litecoin usage keeps climbing – Explained image 2

Source: X

At the same time, activity on Litecoin’s opt-in privacy layer, MWEB, hit a new high. The balance of LTC locked into MWEB climbed massively over the past month, with record peg-ins.

Even with weak market sentiment, Litecoin’s payment utility and network usage remains firmly intact.

Final Thoughts

  • Litecoin’s price is weak, but payment usage and growing MWEB activity prove demand has not disappeared.
  • Institutional support and real-world utility continue to anchor LTC.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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