Litecoin (LTC) price has surged 13 percent after a difficult start in the 1st week of May. An in-depth on-chain analysis provides insight into theย capacity LTC price swings ahead of theย following halving event. What are the chances LTC will reclaim the $120 priceย forecast in the coming weeks?
The next Litecoin (LTC) halving, slated for August 2023, is one of the most anticipated events in the blockchainย tech space inย theย year. New price peaks have followed each of the last two LTC halvings.ย
Onย theย otherย hand, with whales selling and miners depleting their reserves, how will Litecoin price respond in the coming weeks?ย
Litecoin Miners Are Selling
The next halving event will see block bonus announced to Litecoin miners for validating transactions slashed in half, from 12.5 LTC to 6.25 LTC. Typically, when a halving date approaches, cryptocurrency miners look to stock up on their reserves.ย
Onย theย otherย hand, interestingly, that has not happened on the Litecoin network. With theย following halving less than 70 days away, on-chain data shows that LTC miners are still depleting their reserves.
Reportsย by the chart below, Litecoin miners have offloaded nearly 680,000 coins from their reserves in May 2023.ย
As seen over, the miners are taking advantage of theย present high prices to book some profits. Similarly, growing worldwide energy prices and a crackdown on cryptocurrency mining activity by regulatoryย authorities have likewise made mining costs skyrocket in recent months.ย
If these factors doย not abate, LTC miners are likely continuation selling in the build-up to the halving.ย
Inย theย end, this could slow down a potential Litecoin rally in the nextย fewย weeks, regardlessย of positiveย tendency momentum from other investors.
Whales Have Entered Another Profit-Taking Cycle
Litecoin has outperformed Bitcoinย (BTC) and Ethereumย (ETH) in the last 3 weeks. And the positiveย tendency trading activity of the cryptocurrency whales holding balances of 10,000 to 100,000 LTC has been a critical factor.ย
Nonetheless, the whales appearย to have entered a profit-taking cycle thisย comingย week. Betwixt May 23 and May 26, they offloaded 110,000 LTC.ย
At theย present marketย value of $87, those 110,000 cryptoย tokens sold are worth $9.5 Million. Quite itโsย worthย notingย that, the historical trading activity of this whale cohort has been closely correlated to price.ย
This impliesย that they could prompt another LTC price correction if they continue selling.ย
LTC Price Prediction: The Bears Could Target $80
Seeingย as the bearish activity between Litecoin miners and whale investors, LTC canย potentially fall below $80 in the coming days.ย
IntoTheBlockโs Worldwide In/Out of The Money (GIOM) data impliesย that LTC will asย ofย now face a relatively stronger resistance at $90 compared to theย following support cluster at $85.
As seen below, LTC will get initial support from 346,000 investors that purchased 1.62 Million LTC at an average price of $85.ย
Nonetheless, if the bearish momentum prevails as expected, the price could slide further toward $78.ย
โโOn the other hand, the bulls could invalidate the bearish Litecoin priceย forecast if it breaks over the critical $90 resistance level.
Onย theย otherย hand, a potential sell wall from the 623,000 investors that purchased 5.97 Million LTC at an average price of $90 will likely prevent that.ย
Despiteย theย factย that unlikely, LTC could rally toward $120 if that resistance level is breached.
