Today, we see Litecoin’s price down today, reflecting a similar downtrend in the wider cryptocurrency market. On August 16th, Litecoin’s (LTC) value dipped by over 1.5%, falling to approximately $78.25. This underperformance stands out in the crypto market, which experienced a lesser drop of 0.65% during the same period. The downtrend is part of a larger pullback trend that began in early July.
Litecoin Halving Turns into a “Sell the News” Event
The slump in the crypto market coincides with the recovery of the U.S. dollar index (DXY). Interestingly, Litecoin’s correction started a week before the rest of the crypto market. This was primarily due to its overbought relative strength index (RSI) and a decrease in buying sentiment in the days leading up to its “halving” on August 2nd. Since the day its RSI crossed the overbought threshold of 70, LTC’s price has plunged over 30%. From the halving day, the price has decreased 16.45%, suggesting a “sell the news” scenario extending into August 16th’s bearish session.
Strong Hodling Sentiment Despite Selloff
Data tracking addresses that have held Litecoin for more than 155 days, commonly referred to as “hodlers”, show a steady accumulation sentiment. The monthly Hodler Net Position Change metric flipped from negative to positive on July 23rd and has remained so since. This suggests that Litecoin’s most loyal investors have been accumulating LTC tokens before and after the halving, indicating their bullishness towards its market.
On the other hand, Litecoin’s wealthiest investors, or “whales”, seem to be leading the ongoing LTC selloff. For instance, the Litecoin supply held by addresses with a balance between 1 million and 10 million LTC has decreased by 0.5% since the halving. Similarly, the supply cohort of 100,000-1 million LTC has dropped 1% during the same period.
Is this a Typical Post-Halving Selloff?
Independent market analysts Rekt Capital regard the ongoing Litecoin selloff as a typical event that follows the coin’s halving. However, the price usually finds an “accumulation range” and then experiences a sharp rebound to establish a new record high. If the historical cycle repeats, Litecoin could fall to around $40 in the coming months, which is approximately 50% down from the current price levels.
Technical indicators, however, are slightly more optimistic for LTC’s price. Currently, Litecoin’s price is trending lower inside a falling wedge pattern, suggesting the possibility of a bullish reversal in the near future. Depending on the breakout point, LTC/USD could rise to anywhere between $83.25 and $95.75 by October, which is an increase of 6% and 20%, respectively, from the current price levels.
For a more comprehensive view of the market trends, consider using applications like cryptoview.io. It provides a wealth of information and can help you make more informed decisions about your cryptocurrency investments.
Start now using our tools for free.
Please note that this article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
