Within the months main as much as the Litecoin halving in August, the worth of the blockchain’s native LTC token was constantly on the rise. This renewed curiosity in buyers who rushed again into the token and finally pushed its value above $100. That’s till the precise halving occasion rolled round, turning it right into a “purchase the rumor, promote the information” situation. Since then, it has been a downward spiral for the token and the ache might not be over.
Litecoin Quantity Slumps Submit-Halving
Litecoin quantity for the reason that halving was accomplished has been lower than anticipated. Whereas buyers anticipated rising demand for the LTC token with the diminished provide charge, the other has been the case. As an alternative, the day by day buying and selling quantity of the cryptocurrency continued to droop.
Within the final day, the Litceoin day by day buying and selling quantity fell one other 23%. This introduced its day by day quantity to $255 million, a considerably low determine in comparison with the $500 million day by day volumes that the cryptocurrency was recording main as much as the halving.
LTC day by day volumes drops 23% | Supply: CoinMarketCap
Identical to the buying and selling quantity, the worth of LTC has additionally plunged considerably. From its pre-halving peak of $112, the altcoin has fallen over 50% to its present degree simply above $60. Because of this the asset has misplaced all of its positive factors collected between June and July 2023, only one month after the halving was accomplished.
So slightly than being a bullish occasion as initially anticipated, the halving has confirmed to be extra bearish than most. It additionally didn’t assist that it befell throughout the bear market and LTC has fallen quickly alongside bigger property similar to Bitcoin and Ethereum.
LTC value returns to pre-halving ranges | Supply: LTCUSD on Tradingview.com
Will LTC Fall Proceed To $50?
On the present charge, the forecast doesn’t look too good for the LTC value. Litecoin has understandably seen a 3% improve previously day as Bitcoin recovered above $26,000. However this doesn’t look sustainable by its present metric.
The primary indicator of that is that falling day by day buying and selling quantity signifies that curiosity within the asset is waning. As buyers transfer to different property they consider present higher prospects, this may have an effect on the LTC value and will set off additional draw back from right here. Add to this that the coin’s value is beneath its 50-day and 100-day transferring averages and it spells a recipe for catastrophe.
If LTC bulls are unable to carry assist above $60 and it falls as soon as once more because it did on September 11, then $50 turns into a really attainable touchdown level. Such a decline would put it again at November 2022 ranges and sign a protracted bear pattern for the digital asset.
On the time of writing, LTC value remains to be sitting above $62 however the tug-of-war for management between bulls and bears continues to rage on.
