The bear market dominates the market: Litecoin (LTC) might still decrease further?

Litecoin (LTC) continues to face a strong sell-off wave, trading below the $78 level on Tuesday, extending a decline for seven consecutive sessions after failing to break through a key resistance zone. As social media interest gradually cools and momentum indicators simultaneously signal more negative trends, LTC’s short-term outlook remains clouded by downside risks, with downward pressure dominating.

Decreased social media interest puts pressure on Litecoin’s price

Santiment’s Social Dominance index for Litecoin is signaling a clear downtrend. This measure reflects the proportion of discussions related to LTC across cryptocurrency media and has been weakening since early December. By Tuesday, the index dropped to its lowest point of the year at 0.032%, indicating waning market interest in Litecoin and a more cautious investor sentiment.

LTC Social Dominance Index | Source: Santiment In the derivatives market, data also align with this negative scenario. According to OI-Weighted Funding Rate statistics from Coinglass, the number of traders betting on further declines in LTC price currently exceeds those expecting a recovery.

Notably, the funding rate has turned negative since Tuesday, currently at -0.002%, reflecting that short positions are dominant and paying fees to long positions. Historically, whenever Litecoin’s funding rate turns negative, the price tends to experience significant drops, indicating that selling pressure continues to dominate market momentum.

LTC OI-Weighted Funding Rate | Source: Coinglass## Litecoin Price Forecast: Bears are in control of momentum

Litecoin’s price failed to break out after being rejected at the 38.20% Fibonacci retracement zone around $84.63 on December 10. Subsequently, LTC entered a sharp correction of nearly 9%, forming a sequence of six consecutive daily red candles before testing the important support zone on the weekly chart at $77.19 on Monday. As of Tuesday, Litecoin’s price is fluctuating around $77.51.

In a negative scenario, if LTC continues to weaken and closes below the $77.19 support level on the daily chart, selling pressure could intensify, pushing the price further down to the next support zone at $66.51.

Daily LTC/USDT Chart | Source: TradingView Technical indicators are currently clearly favoring the bears. The daily RSI has fallen to 37, below the neutral 50 level, and shows no signs of forming a bottom, indicating that bearish momentum is prevailing. Meanwhile, MACD has confirmed a bearish crossover on Monday, further reinforcing the short-term negative outlook.

Conversely, if the $77.19 support zone is successfully defended, Litecoin could trigger a technical rebound, with an immediate target around $84.63 — corresponding to the 38.20% Fibonacci retracement level.