Litecoin Outperforms Bitcoin, But Is a Correction Coming?

Litecoin Outperforms Bitcoin, But Is a Correction Coming?

Litecoin (LTC) has emerged as one of the best-performing altcoins amid the recent market downturn, reclaiming its pre-drop levels and outpacing Bitcoin’s price performance. However, market analysts warn that this rally could be short-lived.

Litecoin Surges 25% Against Bitcoin in February

📈 According to Santiment, Litecoin’s price dominance over Bitcoin (LTC/BTC ratio) has climbed by 25% this month, making it one of the few altcoins to strengthen against BTC.

📈 LTC’s on-chain activity has surged, with the number of active addresses exceeding 445,000, the highest since February 1, 2025.

📢 But here’s the red flag:

  • Social media sentiment around LTC has turned excessively bullish.
  • Positive mentions now outnumber negative ones 2:1, the first time since February 10.
  • Historically, overly optimistic sentiment often precedes a short-term price pullback.

Will Litecoin’s Rally Hold?

As of now, LTC is trading at $127, up 4.5% in the past 24 hours, after briefly dipping below $110 midweek. Its weekly losses have now narrowed to less than 1%, showing resilience.

However, analysts caution that the LTC/BTC ratio could face a mild correction if traders take profits, especially given the crowded bullish sentiment.

💡 If LTC can hold above key support levels, further gains are possible. But if hype-driven buying fades, a retracement toward $120 or lower could be on the table.