While Litecoin has experienced a significant price drop this week, exceeding 20%, the market signals may not tell the full story. Deeper analysis reveals a more nuanced picture, hinting at a potential accumulation phase rather than panic selling. Expert analyst Erica Hazel points out that despite the price plunge, over $10.5 million worth of LTC left exchanges this week, a pattern characteristic of long-term investors accumulating their holdings. This activity contrasts with the typical behavior of retail investors during panic selling, which would lead to more exchange inflows. 125% increased trading volume and RSI nearing oversold territory further support this notion. Hazel’s analysis suggests that this is textbook accumulation, not a sign of capitulation (a massive sell-off). Further evidence comes from the Litecoin spot inflow/outflow chart, which reveals a consistent flow of LTC leaving exchanges for longer durations than entering. This signifies strong investor confidence even amidst the short-term price drop. Meanwhile, trader CustomizedTrader provides another perspective by highlighting a descending wedge pattern on the Litecoin weekly chart, suggesting a potential breakout that could lead to significant gains. Historically, every major rally in Litecoin has begun after being dismissed by market sentiment. So, despite the initial bearish signals, a deeper look reveals a growing confidence in Litecoin with hints of an upcoming breakout. This quiet accumulation phase may be just starting and is not getting much attention yet.