Litecoin drops over 20% amid weak market, eyes key support at $40, $34, and $29 levels.

Litecoin has fallen more than 20% in a week, trading near $42.55 as bearish sentiment grows and investor activity declines. Key support levels at $40, $34, and $29 are being closely watched, with large holders increasing short positions. Futures open interest has dropped significantly, indicating reduced leveraged trading. Despite price weakness, developments like the LitVM smart contract layer and Nexus Wallet updates continue to engage the community. Litecoin's near-term trend depends on broader crypto market stability, especially Bitcoin's performance.