- Litecoin appears to have a bullish sentiment, but is struggling to regain its losses ahead of the LTC halving.
- Whales have been accumulating the asset aggressively but have had little impact on the price.
The much-anticipated Litecoin halving is less than two weeks away but the asset is still hovering below the price curve against some of the leading cryptos. This event will see the mining reward reduced from 12.5 LTC to 6.25 LTC. Miners currently make around 7,200 LTC in block rewards daily, equivalent to $670,000. Pending the halving event, renowned trader Mikybull Crypto has observed that whales have in the past two days purchased almost $60 million worth of LTC.
On top of this, there has been a gradual increase in the number of LTC holders which was around 8.84 million as of July 17. Crypto analytics firm Santiment has also observed a surge in whale activities in the past few weeks. Whale transaction counts were found to be over $100,000. This is said to have been recorded between 100 and 200 daily transactions. Interestingly, the transaction count saw a significant decline to 37 in the past couple of days.
Similarly, transactions of more than $1 million have also seen an increased volume and were reported to have gone past 100 daily transactions on certain days. As the halving gets closer, the daily transaction has fallen to around eight.
More on Litecoin Price Analysis
While most of the cryptos are in greens in the past 24 hours, Litecoin is 0.01 percent down, and it is still struggling to turn around its 6.7 percent weekly loss. The recent whale activity has obviously had little impact as its 24-hour trading volume sits at $443,911,612 at $93.41. Its highest recorded 24-hour trading volume occurred on July 1, when it exceeded $3 billion. Recently, there has been a consecutive five-day period of closing trading sessions with losses. Litecoin currently has a resistance level of $98 and a support level of 87.
Contrary to what was expected a few weeks before LTC halving, the asset has fallen below the critical horizontal area, and with a daily bearish RSI, a downward trend may continue. The RSI is used to assess whether an asset has been overbought or oversold. It is also used to decide whether to accumulate or sell. When it stands above 50, it is upward. However, when it appears below 50, it is downward. Since reaching the $115 price point, LTC has recorded a continuous decline.
It is also observed that there is a presence of bullish patterns and a confluence of support levels right below the current price point. This suggests that a short-term reading is quite bullish. Litecoin is said to be trading inside a descending wedge.
Regardless of the recent decline, Benjamin Cowen, a crypto expert believes Litecoin is showing a pattern similar to previous halving events.
So far, #LTC is fading into its halving, just as it always has. Note that #LTC has historically topped out in June/July of its halving year. Note that the halving is projected to be in August (just like the prior cycles).
When the asset accumulation continues and “all other things get equal,” Litecoin could easily hit $300 after the halving.
