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 traders who rushed again into the token and ultimately pushed its worth 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 is probably not over.
Litecoin Quantity Slumps Submit-Halving
Litecoin volume for the reason that halving was accomplished has been lower than anticipated. Whereas traders anticipated rising demand for the LTC token with the diminished provide price, the alternative has been the case. As an alternative, the every day buying and selling quantity of the cryptocurrency continued to hunch.
Within the final day, the Litceoin every day buying and selling quantity fell one other 23%. This introduced its every day quantity to $255 million, a considerably low determine in comparison with the $500 million every day volumes that the cryptocurrency was recording main as much as the halving.
LTC every 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. Which means the asset has misplaced all of its positive factors accrued between June and July 2023, only one month after the halving was accomplished.
So moderately than being a bullish occasion as initially anticipated, the halving has proven to be more bearish than most. It additionally didn’t assist that it came about throughout the bear market and LTC has fallen quickly alongside bigger belongings akin to Bitcoin and Ethereum.
LTC worth returns to pre-halving ranges | Supply: LTCUSD on Tradingview.com
Will LTC Fall Proceed To $50?
On the present price, the forecast doesn’t look too good for the LTC worth. 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 every day buying and selling quantity signifies that curiosity within the asset is waning. As traders transfer to different belongings they consider present higher prospects, it will have an effect on the LTC price and will set off additional draw back from right here. Add to this that the coin’s worth is under its 50-day and 100-day transferring averages and it spells a recipe for catastrophe.
If LTC bulls are unable to hold support 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 worth continues to be sitting above $62 however the tug-of-war for management between bulls and bears continues to rage on.