The price of Litecoin (LTC) has been experiencing a significant decline since the beginning of July, following a period of relative stability and reaching a multi-month high. Over the past five days, the altcoin has plummeted by more than 17%, although it is still up by 36.78% since the start of the year. The total market capitalization of LTC has also dropped by nearly 8% in the past 24 hours, now standing at $7 billion. Moreover, the total volume of LTC traded within the same period has decreased by over 6%.
One of the major factors influencing the current decline in LTC price is the upcoming halving event scheduled for August. This event has been causing jitters in the cryptocurrency market, especially after the release of the Federal Reserve’s meeting minutes for June. The minutes indicated the possibility of another interest rate hike this month, and market traders are now pricing in an 88% chance of a 25-basis point hike in the Fed’s July meeting. These macroeconomic concerns have led to a decrease in confidence among investors, as reflected in the Crypto Greed and Fear Index, which has dropped from a Greed level of 63 to a more neutral level of 59.
Despite the recent downward trend, the excitement surrounding the halving event has prevented LTC from experiencing a more severe decline. Whales in the cryptocurrency market have already started making moves, driving up interest in LTC and resulting in a 13% increase in its price over the past week.
The Litecoin halving event, which occurs approximately every four years or after the mining of 840,000 blocks, aims to maintain a controlled and limited supply of LTC tokens over time. The reduction in the block reward is expected to create scarcity, thus potentially increasing demand and driving up the price of LTC. Historical data suggests that the price of Litecoin usually doubles just before a halving event, and many investors are anticipating a significant increase of over 300% in LTC price after the event.
Related Post
In terms of price analysis, despite the recent decline, Litecoin has remained above the 50-day and 200-day exponential moving averages. However, its Relative Strength Index (RSI) has slightly decreased below the signal line. As the halving event approaches, there is a likelihood that LTC price will continue to rise in the medium term. If this trend continues, the immediate resistance level to watch will be this year’s high of $115. However, a drop below the crucial support level of $93.30 could invalidate the bullish thesis.
Overall, while Litecoin has experienced a sharp decline in price recently, the upcoming halving event has generated excitement among investors and prevented a further decline. The halving event is expected to create scarcity, potentially driving up the demand for LTC and pushing its price higher. However, it is important to monitor key support and resistance levels in order to gauge the future direction of Litecoin’s price movement.
