Three Factors Driving Litecoin Price Above $80 Support Despite BTC and ETH Plummeting

Although Bitcoin (BTC), Ethereum (ETH), and XRP have lost important support levels, the price of Litecoin (LTC) remains strong above $80 last Thursday. In the context of the global crypto market facing pressure from the downward trend, three main factors have contributed to LTC maintaining strength: changes in the regulatory environment, the accumulation actions of LTC miners, and the positive sentiment from investors regarding the potential approval of Litecoin ETF in 2025. Below is a detailed analysis of these factors and how they support the price of LTC amid the market recession.

1. Paul Atkins Approved by the U.S. Senate Banking Committee - Positive Signal for Cryptocurrency One of the most important factors driving the price of LTC is the progress in the appointment of Mr. Paul Atkins as the head of the U.S. Securities and Exchange Commission (SEC) under President Donald Trump. On Thursday, the Senate Banking Committee approved Atkins' nomination, marking a potential turning point for cryptocurrency regulation in the U.S. Paul Atkins is known as a friendly figure in the crypto world, although he faced initial criticism over conflicts of interest. With Trump's Republican Party holding a narrow majority of 220-215 in Congress, Atkins' appointment is now just awaiting an official vote in the Senate. If approved, Atkins could pave the way for a more open legal environment for cryptocurrencies, particularly in approving spot ETF funds – a matter that falls directly under the SEC's authority. This optimism has been reflected on Polymarket, where investors have increased the probability of approving the Litecoin ETF in 2025 by an additional 9% after Atkins was approved by the committee. Conversely, if the Senate rejects him, an alternative candidate with a negative view on cryptocurrencies could emerge, which would be detrimental to LTC and other coins. It is this positive outlook from Atkins that has helped bolster confidence in LTC, keeping the price above $80 despite pressure from the crypto market.
2. LTC Miners Accumulation $24.6 Million – Strong Signal Amid Downward Trend The second factor supporting the price of Litecoin is the accumulation behavior of miners. Since the downward trend began in late February, LTC miners have quietly accumulated a large amount of coin that they have mined. According to the miner reserve chart from IntoTheBlock, the amount of LTC in the wallets of miners and mining pools has increased from 1.74 million LTC on February 22 to 2.04 million LTC according to the latest data – recorded after Trump confirmed the implementation of new tariffs on Wednesday. With the current price of LTC around $82, this amount of accumulated LTC is equivalent to approximately $24.6 million USD. Notably, the price of LTC has fallen more than 10% in the past three weeks, but the holding action of miners shows strong confidence in the long-term value of this asset. The reduction in new LTC supply hitting the market has helped to limit selling pressure, contributing to keeping the price above the support level of $80 while BTC, ETH, and XRP respectively plummeted below $82,000, $1,800, and $2 on the same day. This behavior is further reinforced by the prospects of LTC ETF approval. Miners seem to be betting on the possibility of institutional cash flow pouring in if the ETF is approved, leading to the potential for a breakout price increase in the future. This is a positive signal, indicating that key stakeholders in the Litecoin ecosystem remain optimistic despite the overall downward trend of the market.
3. Buying Pressure at the Price Level of $80 – Support from Break-Even Data The third factor helping LTC hold steady is the large volume of addresses that have purchased LTC around the price level of $80, creating an important psychological support zone. According to break-even data from IntoTheBlock, about 716,700 addresses have bought LTC at an average price of $79. When the price drops near this level, the buying pressure from holders trying to avoid falling into a net loss has helped limit the decline of LTC amid a volatile crypto market. History shows that price fluctuations often struggle when approaching significant accumulation levels. With 716,700 addresses at breakeven around $79-$80, this serves as a natural "support wall" preventing LTC from sliding deeper. Conversely, the data also indicates the next major resistance level at $96, where 1.32 million addresses have purchased LTC – the largest accumulation of this coin. If news about the LTC ETF is strong enough to generate momentum for a recovery, traders should be cautious as the price approaches $95-$96, as this could be the point where selling pressure increases significantly. Conclusion While major coins like Bitcoin, Ethereum, and XRP are facing heavy losses, Litecoin has demonstrated remarkable resilience by maintaining above the support level of $80 on Thursday. The combination of positive legal prospects from the appointment of Paul Atkins, the accumulation strategy of $24.6 million by miners, and buying pressure from hundreds of thousands of addresses at the price range of $79-$80 has created a solid "shield" for LTC. Despite the global market facing pressure from the tariff policies of the Trump administration, Litecoin has emerged as a bright spot, bringing hope to investors during this challenging period.