Litecoin Falls 12% to 4-Month Low — Adoption, Lending and MWEB Activity Stay Strong

Litecoin’s price has taken a hit recently, sliding to its weakest level in over four months as the token fell nearly 12% over the past week. But the on-chain and adoption story tells a more nuanced picture: while charts point to persistent selling pressure, user demand and real-world utility for LTC remain robust. Price and technicals - On the daily chart, LTC dropped to its lowest levels since October before eking out a small rebound. The broader trend looks bearish: prices are trading below key moving averages and struggling to reclaim lost ground. - Momentum indicators show continued weakness — the RSI signaled heavy selling and the MACD remained negative, suggesting downside momentum has not yet fully dissipated. - Volatility has picked up, with price repeatedly testing the lower Bollinger Band. Adoption and network activity - Despite the weak market sentiment, adoption signals are encouraging. SBI VC Trade, the crypto exchange backed by Japan’s SBI Holdings, recently added Litecoin to its Lending Coin program. Japanese users can now lend LTC to earn interest, putting it alongside established assets such as Bitcoin (BTC), Ethereum (ETH) and Ripple’s XRP. The platform already supports lending for more than 30 cryptocurrencies, and Litecoin’s inclusion is a tangible vote of confidence. - Payment usage is rising: CoinGate data shows Litecoin was the third-most used cryptocurrency for payments in January, accounting for 17.7% of transactions — up from 16.4% in December and trailing only Bitcoin and USDC. - Activity on Litecoin’s opt-in privacy layer, MWEB, also hit a new high. The balance of LTC locked into MWEB climbed sharply over the past month with record peg-ins, indicating growing adoption of the privacy feature. Bottom line Price action paints a bearish near-term picture, but real-world demand — from exchange lending listings to increased payments and MWEB activity — suggests Litecoin’s payment utility and network usage remain intact. Traders and users will be watching whether these fundamental indicators can help stabilize price action in the weeks ahead. Disclaimer: This article is for informational purposes only and is not investment advice. Cryptocurrency trading is high-risk; readers should do their own research before making financial decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news