- Litecoin (LTC) price is currently facing a downtrend, raising concerns among investors as the LTC halving approaches.
- 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 ecosystem. Investors and enthusiasts are closely watching this significant event’s potential impact on LTC’s price. However, amidst the anticipation, the current market trend remains bearish, as LTC’s price continues to experience a downtrend.
The countdown to Litecoin halving has brought increased attention to the asset, leading to a notable 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.
Nevertheless, the crypto market’s inherent volatility poses a challenge in 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.
On-chain analyst @Ali_Charts has provided an interesting perspective on the upcoming halving. Noting 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 each time the number of new Litecoin addresses surpassed 350,000 in the last five years, significant price corrections followed.
#Litecoin | Each time the number of new $LTC addresses surpassed 350,000 in the last five years, a significant price correction followed.
More than 690,000 #LTC addresses were recently created, suggesting the upcoming #halving could be a "sell the news" event. pic.twitter.com/FBsokPgaYA
— Ali (@ali_charts) July 23, 2023
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Despite the market’s uncertain trajectory, positive signs emerge 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. The current LTC price sits at $88.84, experiencing a 5% drop in the last 24 hours. For a bullish move, LTC needs to break above the downtrend line and reach the $98.71 resistance level, signifying a 10% climb from its current position. Conversely, a further bearish trend could push LTC downwards, possibly to the $80.00 range.
As the Litecoin halving approaches, the crypto community eagerly awaits the event’s outcome and its potential implications for LTC’s price. The halving’s historical significance, coupled with the underlying metrics, adds to the intrigue surrounding this highly anticipated event.
