“In the months leading up to the August Litecoin halving, the price of the blockchain’s native LTC token consistently surged. This resurgence in interest drew investors back into the token, driving its price above the $100 mark. However, when the actual halving event occurred, it transformed into a classic ‘buy the rumor, sell the news’ situation. Subsequently, the token has experienced a downward trend, and there may be further challenges ahead.”
Litecoin Trading Volume Declines After Halving
“The Litecoin trading volume post-halving has fallen short of expectations. Investors anticipated increased demand for LTC following the reduction in its supply rate, but the opposite has occurred. Instead, the daily trading volume for the cryptocurrency has continued to decline.
Over the past day, Litecoin’s daily trading volume dropped by another 23%, bringing it down to $255 million. This figure is notably lower than the $500 million daily volumes the cryptocurrency was experiencing in the lead-up to the halving.”
“In line with the declining trading volume, the price of LTC has also experienced a significant plunge. Starting from its pre-halving peak of $112, this altcoin has dropped by over 50%, currently resting slightly above $60. As a result, all the gains it had accrued between June and July 2023 have been completely wiped out, just one month after the halving concluded.
Instead of delivering the expected bullish sentiment, the halving has proven to be more bearish than anticipated. Furthermore, its occurrence during a bear market did not provide any respite, as LTC swiftly declined in tandem with major assets like Bitcoin and Ethereum.”
“Is LTC’s Downward Trend Headed Towards $50?”
“At the moment, the outlook for LTC’s price doesn’t appear favorable. While Litecoin has experienced a 3% uptick in the past day, likely in response to Bitcoin’s recovery above $26,000, this increase may not be sustainable based on its current indicators.
The primary concern arises from the dwindling daily trading volume, indicating a waning interest in the asset. As investors seek more promising opportunities in other assets, this could exert further downward pressure on LTC’s price. Additionally, the fact that the coin’s price is below its 50-day and 100-day moving averages is a concerning sign.
Should LTC’s bulls fail to maintain support above $60 and a drop similar to the one seen on September 11 occurs again, the $50 level could become a plausible target. Such a decline would return the price to levels last seen in November 2022, signaling a prolonged bearish trend for the digital asset.
Currently, at the time of writing, LTC’s price remains above $62, but the ongoing battle for control between the bulls and bears continues.”