Litecoin (LTC) finds itself at a critical juncture, its destiny hanging on a thread as it clings to a long-term ascending support line that has been a crucial part of its technical chart for over a year. The recent third halving event, coupled with bearish signals and resistance at the $100 mark, has thrown Litecoin’s future trend into uncertainty. The world’s eyes are now glued to whether LTC will rebound from this line or break down, potentially signalling a significant change in its market trajectory.
On August 2, Litecoin underwent its third halving event, a mechanism designed to control inflation by halving the number of new coins created and earned by miners. The block rewards for LTC were reduced from 15 to a mere 6.25, ostensibly increasing the coin’s scarcity. However, despite the deflationary implications of this halving, the price of Litecoin experienced a decline in the week following the event. This price dip indicates the possibility that miners may have initiated a sell-off.
The price of LTC is hovering around an ascending support line that has held for 427 days. The crypto market speculates whether the coin will bounce back from this line or break down. If the support line breaks, it could lead to a significant 20% dip in the $64 region. Conversely, a rebound could propel LTC to a 33% rise toward the $100 resistance, a mark it briefly surpassed in July before retreating.
The technical outlook for LTC remains bearish. Analyzing the weekly timeframe, a series of bearish signals have emerged following LTC’s failed breakout in July. This failure solidified the $100 area as a resistance level and initiated a downward trajectory. This downturn underscores the illegitimacy of the earlier breakout, often a precursor to sharp downward shifts.
However, all hope is not lost for LTC. Despite a minor dip below the support line of an ascending parallel channel that has held since early February, LTC hasn’t yet confirmed a break. Combining this channel’s support line and the longer-term ascending support line reinforces its importance. This alignment lends hope for a possible reversal.
At press time, the live Litecoin price is $74.58, with a 24-hour trading volume of $616,513,630 per CoinMarketCap data. Despite a decline of 3.77% in the last 24 hours, Litecoin maintains a solid position at #13 on CoinMarketCap with a market cap of $5,485,619,335. With a circulating supply of 73,551,614 LTC coins, it remains a significant player in the crypto market.
