- Litecoin (LTC) price faces a downtrend, raising concerns among investors as the LTC halving approaches.
- The Litecoin halving will drop mining rewards by 50%, from 12.5 to 6.25 LTC per block.
- The growing number of new addresses on the network might indicate a potential “Sell the News” event after the halving.
With the Litecoin (LTC) halving just days away, excitement and speculation are mounting in the digital currency industry. Investors and enthusiasts closely watch this significant event’s potential impact on LTC’s price. However, amidst the anticipation, Litecoin (LTC) price is currently facing a downtrend, raising concerns among investors as the LTC halving approaches.
As a significant event in the Litecoin ecosystem, the countdown to Litecoin halving has brought increased attention to the asset, leading to a 56% surge in its 24-hour trading volume. The halving event, occurring approximately every four years, will cut rewards to miners in half, reducing block rewards from 12.5 to 6.25 LTC tokens. The expectation surrounding the halving is that the decreased supply of new LTC tokens entering the market will drive up prices due to increased scarcity.
Based on the sequence, Litecoin halving dates are determined by mining every 840,000 blocks. This signals that the dates could vary based on mining completion. Accordingly, the next one is expected to be in eight days, despite the August 4 schedule.
Nevertheless, the crypto market’s inherent volatility challenges predicting LTC’s price movement post-halving. While halving events have historically been associated with bullish narratives, there are instances where the price surge falls short of investor expectations or fails to materialize. The broader sentiment in the crypto market also heavily influences the trend following the halving.
Will Investors Conform to the “Buy the Rumor and Sell the News” Strategy?
On the other hand, an on-chain analyst has provided his take on the upcoming halving. Ali, an online analyst (@ali charts), has noted the growing number of new addresses being created on the Litecoin Network, with over 690,000 addresses added recently. He suggests the possibility of a “Sell the News” event after the halving. Historical data reveals that significant price corrections followed each time the number of new Litecoin addresses surpassed 350,000 in the last five years.
As the halving day approaches, investors might employ the “buy the rumor and sell the news” strategy, accumulating LTC tokens beforehand and potentially triggering a price rise. However, they should also be prepared for a potential sell-off before halving, as some traders may seize the opportunity to realize profits.
At the time of writing, Litecoin’s price is $89.30, down 0.25% in the last 24 hours. This proof-of-work (PoW) coin is down 3% over the last seven days, reinforcing the bearish cloud that has been hovering over the price.
On the longer timeframes, LTC remains bullish as it trades 27% higher than its January 1 opening and 65% higher than its value a year ago.
Litecoin is currently fighting immediate resistance from the $89 to $90 where all the major simple moving averages are currently found. Breaking this barrier would indicate the ability of the bulls to push the price of LTC higher.
The first line of resistance would emerge from the major daily supply level at $94.5 with the short-term target set at the $104 local high. Such a move would represent a 17.15% uptick from the current price.
LTC/USD Daily Chart
In addition to technical positive trajectory, bullish signs are emerging for Litecoin. Data from on-chain analytics firm Santiment indicates an uptrend in wallets holding at least 100 LTC, suggesting increased adoption from sizable investors.
On the downside, LTC must break above the downtrend line for a bearish move and reach the $87 support level. A further sell-off could push LTC lower, possibly to the $80.00 range.
As the Litecoin halving approaches, the crypto community eagerly awaits the event’s outcome and potential implications for LTC’s price. The halving’s historical significance and underlying metrics add to the intrigue surrounding this highly anticipated event.
