Litecoin (LTC) loses 10% after its halving event! August 10 analysis
Litecoin (LTC) has recorded a 10% drop since its recent halving event, which occurred just 9 days ago. While this drop may seem surprising, it is actually in line with historical trends. Litecoin may not experience a bull-run before Bitcoin’s Halving in 2024.
Litecoin drops to $84: A post-halving assessment
The Litecoin halving, a fundamental event with a positive impact on the network, took place on August 2. This anti-inflation process aims to reduce the rate of creation of new tokens in circulation. However, contrary to the expectations of many observers, Litecoin (LTC) did not soar following this event. On the contrary, its value plummeted by up to 15% a few days after the halving event. Currently, LTC is trading at around $84.
A closer look at the history of the cryptocurrency prices shows that this development is hardly surprising, given the patterns observed after each halving. The Litecoin (LTC) bull run seems to occur only after the Bitcoin halving.
It is therefore possible that the current decline in the LTC price will persist, potentially targeting a low of $40.
What do the technical indicators say?
Technical indicators reveal that the Litecoin (LTC) price is currently below the 200-period weekly moving average. This reflects a long-term downtrend. Nevertheless, it remains above the 50-period weekly moving average, which could play a major support role. A break of the 50-period moving average by the 200-period moving average (Golden Cross) would be a positive signal for Litecoin (LTC).
Furthermore, the weekly RSI shows a balance between buying and selling pressure. If this oscillator falls below the support threshold at 46.5, this could presage further downside for Litecoin (LTC). However, if the RSI rebounds from this level, an upside could be on the cards.
Even so, a short position seems more appropriate as we await Bitcoin’s halving, which is likely to trigger the long-awaited bull market for Litecoin and the entire crypto market.
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Je suis passionnée par les cryptomonnaies, un monde que j'ai découvert il y a peine 3 ans. Mon seul but est de vous informer de cet univers incroyable à travers mes articles.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.