Litecoins Potential Price Surge to $120 Before Halving

Litecoins Potential Price Surge to $120 Before Halving

An in-depth analysis of Litecoin’s upcoming halving event reveals that miners are selling and whales are entering a profit-taking cycle, potentially slowing down a potential rally and prompting a price correction towards $80.

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 the  capacity LTC price swings ahead of the following halving event. What are the chances LTC will reclaim the $120 price forecast in the coming weeks?

The next Litecoin (LTC) halving, slated for August 2023, is one of the most anticipated events in the blockchain tech space in the year. New price peaks have followed each of the last two LTC halvings. 

On the other hand, with whales selling and miners depleting their reserves, how will Litecoin price respond in the coming weeks? 

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. 

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On the other hand, interestingly, that has not happened on the Litecoin network. With the following halving less than 70 days away, on-chain data shows that LTC miners are still depleting their reserves.

Reports by the chart below, Litecoin miners have offloaded nearly 680,000 coins from their reserves in May 2023. 

As seen over, the miners are taking advantage of the present high prices to book some profits. Similarly, growing worldwide energy prices and a crackdown on cryptocurrency mining activity by regulatory authorities have likewise made mining costs skyrocket in recent months. 

If these factors do not abate, LTC miners are likely continuation selling in the build-up to the halving. 

In the end, this could slow down a potential Litecoin rally in the next few weeks, regardless of positive  tendency momentum from other investors.

Whales Have Entered Another Profit-Taking Cycle

Litecoin has outperformed Bitcoin (BTC) and Ethereum (ETH) in the last 3 weeks. And the positive  tendency trading activity of the cryptocurrency whales holding balances of 10,000 to 100,000 LTC has been a critical factor. 

Nonetheless, the whales appear to have entered a profit-taking cycle this coming week. Betwixt May 23 and May 26, they offloaded 110,000 LTC. 

Litecoin (LTC) Price Prediction - Whales Wallet Balances. May 2023.
Litecoin (LTC) Price Prediction – Whales Wallet Balances. May 2023. Source: Santiment

At the present market value of $87, those 110,000 crypto tokens sold are worth $9.5 Million. Quite it’s worth noting that, the historical trading activity of this whale cohort has been closely correlated to price. 

This implies that they could prompt another LTC price correction if they continue selling. 

LTC Price Prediction: The Bears Could Target $80

Seeing as the bearish activity between Litecoin miners and whale investors, LTC can potentially fall below $80 in the coming days. 

IntoTheBlock’s Worldwide In/Out of The Money (GIOM) data implies that LTC will as of now face a relatively stronger resistance at $90 compared to the 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. 

Nonetheless, if the bearish momentum prevails as expected, the price could slide further toward $78. 

Litecoin (LTC) Price Prediction - GIOM data. May 2023
Litecoin (LTC) Price Prediction – GIOM data. May 2023. Source: IntoTheBlock

​​On the other hand, the bulls could invalidate the bearish Litecoin price forecast if it breaks over the critical $90 resistance level.

On the other 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. 

Despite the fact that unlikely, LTC could rally toward $120 if that resistance level is breached.


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