• 29 May, 2024
News

Litecoin’s $100 Price Target in Doubt Despite Approaching Halving Event

Litecoin (LTC), one of the dominant altcoins in the cryptocurrency space, may be witnessing a breakout after 27 days of consolidation, as indicated by Captain Faibik, a renowned crypto analyst and trader. Yet, several on-chain metrics paint a gloomy picture for the coin’s short-term momentum, even as its halving event looms just around the corner on August 2nd.

Traditionally, cryptocurrencies have been known to experience a surge in value right before a halving event. However, in a surprising turn of events, Litecoin is trading at $91.25, barely above a critical support threshold of $90. Data from crypto intelligence tracker Santiment suggests that discussions concerning LTC among holders and traders have declined. This downturn could be visualized through the altcoin’s declining social dominance and a recent dip in daily active addresses on its network.

Although LTC’s daily active addresses showed promise in May and a slight uptick in June, their numbers receded to average figures in the fourth week of July. Adding to this, a surge in trading volume during the first week of July failed to inspire a revival in the coin’s valuation.

Social dominance, which gauges the frequency of asset mentions across social media, has ebbed throughout July, echoing trends observed in April and May. A rise in social dominance has historically been associated with an asset’s price rally, but this hasn’t been the case for Litecoin recently.

Given these bearish indicators and the coin’s tepid price movements, LTC’s short-term prospects of reaching its $100 mark appear bleak. Yet, with the halving event around the corner, the crypto community is watching closely to see if it could catalyze a bullish trend for Litecoin.

At press time, Litecoin stands at $91.18 on Binance. Should the coin experience a bearish phase, the immediate support line lies at $90, succeeded by the 200-day Exponential Moving Average (EMA) priced at $87.46. If the tables turn and a bullish momentum ensues, LTC could aim for the $100 mark, a feat it previously achieved in mid-July.

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