Litecoin Volume Slumps Post-Halving
In the months leading up to the Litecoin halving in August, the price of the cryptocurrency’s native LTC token experienced a continuous rise. This attracted investors who eagerly jumped back into the token, driving its price above $100. However, when the actual halving event occurred, it turned into a “buy the rumor, sell the news” situation. Since then, the token has been on a downward spiral.
Daily Trading Volume Declines
Contrary to expectations, the Litecoin daily trading volume has decreased following the completion of the halving. Investors anticipated an increase in demand for the LTC token due to the reduced supply rate, but instead, the cryptocurrency’s daily trading volume continued to slump.
In fact, in just one day, the Litecoin daily trading volume dropped by 23%. This brought its daily volume down to $255 million, a significant decrease compared to the $500 million daily volumes recorded prior to the halving.
Price Plunge
Alongside declining trading volume, the price of LTC has also plummeted. It fell over 50% from its peak of $112 before the halving and is now hovering slightly above $60. This means that all gains accumulated between June and July 2023 have been wiped out just one month after the halving.
The bearish market conditions and rapid decline of larger assets like Bitcoin and Ethereum have also contributed to LTC’s price drop. Additionally, LTC’s price is currently below its 50-day and 100-day moving averages, indicating potential further downside.
Possible Landing Point
If LTC fails to hold support above $60 and experiences another fall similar to September 11th, it could potentially reach $50. This decline would bring it back to November 2022 levels and signal an extended bear trend for the digital asset.
Hot Take: Uncertain Future for LTC
In conclusion, the Litecoin halving did not have the expected positive impact on the token’s price and trading volume. Instead, both have experienced significant declines. With a bearish market and potential further downside, the future of LTC remains uncertain. The ongoing battle between bulls and bears continues to determine the fate of LTC.
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