The price of Litecoin (LTC) has seen intense volatility in the final hours leading up to its scheduled halving event, falling from recent highs as investors appear to be selling on the news. The halving, set to occur at 16:34 UTC today, would reduce the mining reward for LTC from 25 to 12.5 coins.
In a gripping pre-halving analysis by a renowned analytic firm Santiment, the firm explored Litecoin’s heightened social dominance and the intriguing “buy the rumor, sell the news” dynamics:
⚡️ Is #Litecoin going through a "buy the rumor, sell the news" scenario with less than 9 hours until the 16:34 UTC #halving? Social dominance has predictably jumped with many showing panic signs. Patience through the $LTC volatility is proving to be tough. https://t.co/0ojqI3OpUy pic.twitter.com/b8XpRhECtt
— Santiment (@santimentfeed) August 2, 2023
Social metrics tracked by analytics provider Santiment showed that panic selling has taken hold, with many LTC holders seemingly struggling to keep patience through the pre-halving turbulence. LTC rallied to over $140 in June, more than triple its price at the start of the year, but has since pulled back around 30% to trade near $100 ahead of the halving.
In a recent tweet by crypto expert Ali, the crucial support and resistance levels for Litecoin are highlighted ahead of the impending halving:
#Litecoin trades between two significant supply walls ahead of the #halving.
— Ali (@ali_charts) August 2, 2023
One acts as support between $87 and $90, where 625K addresses bought 7.8 million $LTC. The other one acts as resistance between $90 and $93, where 590K addresses hold 6 million #LTC. pic.twitter.com/PJjJR4TeHO
According to Ali, Litecoin is presently caught between two key areas of supply. There is strong support between $87-90, where over 625,000 addresses previously accumulated 7.8 million LTC. On the other hand, there is significant resistance in the range of $90-93, with approximately 600,000 addresses holding around 6 million LTC. These investors are likely to consider selling during any price surges after the halving.
Halving events have historically catalyzed strong bull runs for Bitcoin, but the impact on Litecoin is less clear. With the halving now imminent, traders and investors would soon learn whether the hype surrounding the event was warranted or if it would ultimately prove a ‘sell the news’ disappointment.
Litecoin (LTC) has been trading in a relatively tight range, with the latest 24-hour high at $94.31 and a low at $90.00. The trading volume during this period stands at $785,178,842, indicating a moderate level of market activity.
At the time of writing, Litecoin’s market capitalization is approximately $6,643,463,991, with a fully diluted market cap of $7,592,951,067. The circulating supply of LTC is 73,495,927 coins, which accounts for approximately 87% of the maximum supply of 84,000,000 LTC coins.
The 50-day and 200-day moving averages offer insights into LTC’s overall trend. The 50-day moving average is around $91.82, while the 200-day moving average is about $92.14. The price below both moving averages suggests a bearish sentiment in the medium to long term. The Relative Strength Index (RSI) for Litecoin is at 53, indicating a neutral zone. This suggests a balanced market sentiment without overbought or oversold conditions.
In conclusion, the highly anticipated halving event for Litecoin has resulted in intense market volatility, with the price experiencing significant fluctuations leading up to the event. While the historical impact of halvings on Bitcoin has been positive, the impact on Litecoin remains uncertain. As panic selling grips some LTC holders, others hold on to their positions, resulting in cryptocurrency trading within a relatively tight range.
