Litecoin Fell 21% in a Month, Over 4 Times Bitcoin's Drop. Can It Get Back to $70?

Litecoin has experienced a significant decline of 20.5% over the past month, currently trading at $56.65. This drop is notably sharper than Bitcoin's more modest 4.6% decrease during the same timeframe, indicating that Litecoin's downturn is over four times more severe. On October 25, Litecoin reached a low of $56.66, positioning it near the bottom of its monthly trading range.

Traders are particularly focused on the $70 price point, which Litecoin last reached in September 2026. The cryptocurrency began that month at $71.27, shortly after hitting a 90-day high of $72.55. To return to the $70 mark, Litecoin would need to increase by approximately 23.6% from its current value.

As of October 27, Litecoin's market capitalization stood at $4.40 billion, ranking it 26th among all cryptocurrencies. If Litecoin were to regain the $70 price, it would reflect a valuation similar to its late-September levels. Historically, a price of $70 is considered modest for Litecoin, which opened 2026 at $76.69 and peaked at $99.38. Its all-time high remains $410.26, achieved on May 9, 2021, and it currently trades 86.2% below that peak.

However, the increasing supply of Litecoin poses a challenge for long-term investors. Miners continuously generate new Litecoins with each block, leading to a rising circulating supply. This increase means that a $70 valuation would imply a larger market cap compared to previous cycles, making Litecoin appear cheaper on older price charts than it is now.

Demand for spot Litecoin exchange-traded funds (ETFs), which directly hold Litecoin and are traded on stock exchanges, has diminished as the price has fallen. Between September 28 and October 26, U.S. spot Litecoin ETFs saw net inflows on only a handful of occasions, amounting to $1.18 million on September 28, $1.45 million on September 30, $482,142 on October 7, and $581,140 on October 19. On several other days, there were no inflows at all.

By October 26, these funds had accumulated $13.02 million in net assets, with total net inflows of $16.88 million. In stark contrast, U.S. spot Bitcoin ETFs attracted $110.34 million in a single day. The largest days for Litecoin inflows were at the end of September when LTC was still trading near $71, but interest waned as the price dropped.

The performance of Bitcoin may influence Litecoin's potential recovery. The LTC/BTC ratio, which indicates how much Bitcoin can be purchased with one Litecoin, currently stands at approximately 0.000702, reflecting Litecoin's struggles relative to Bitcoin. In the past month, Ethereum fell by 13.6%, while XRP declined by 13.8%, both outperforming Litecoin, suggesting that investors are gravitating toward larger cryptocurrencies.

Litecoin's earlier gains were closely tied to Bitcoin's performance. Bitcoin rose from a 90-day low of $62,773 on August 1 to $86,597 by September 21, during which Litecoin surged from $43.81 on August 14 to its peak of $72.55. As it stands, Bitcoin is trading at $80,684, just under its 20-day average of $81,999 and its 50-day average of $81,806.

For Litecoin to recover, it needs to reclaim critical moving averages. Currently, LTC is trading below its 20-day average of $60.50 and its 50-day average of $61.34, indicating that recent buyers are at a loss. However, it remains above its 200-day average of $52.11, which has maintained a longer-term uptrend since the June 2026 low of $40.87.

As for the possibility of Litecoin reaching $70 by the end of December 2026, it seems unlikely without several key developments. First, Bitcoin would need to regain its 20-day average of $81,999, as past rallies in Litecoin have often followed increases in Bitcoin's price. Second, LTC would need to close above its 50-day average of $61.34. Until these conditions are met, discussions about a return to $70 remain speculative.

Moreover, spot Litecoin ETFs need to show consistent net inflows on consecutive days, a trend that has not been observed since late September. Even if these improvements occur, sellers who purchased near the $72.55 high in September may create resistance in that price range, where sell pressure tends to accumulate.

If Bitcoin continues to decline while ETF demand remains stagnant, the critical level to watch will be the 200-day average at $52.11. A daily close below this average could bring the August 2026 low of $43.81 back into play, making it a more pressing concern for Litecoin holders than the $70 target.

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