Faced with the risk that mining costs would exceed the value of the block reward, Litecoin miners began to reduce their reserves.
After the third halving, which took place on August 2, the LTC price corrected from $94 to $80. However, the readings of key on-chain metrics hint that the fall is not over yet.
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Miners are getting rid of Litecoin
After the completion of the halving, miner block rewards decreased from 12.5 LTC to 6.25 LTC. Against the backdrop of rising costs for mining coins, they began to actively deplete their reserves.
According to IntoTheBlock, over the past 5 days, miners have sold about 60,000 Litecoins. The chart below shows that on August 3, their combined balance was 2.48 million coins, and by the close of trading on August 6, it had decreased to 2.42 million.
Source: IntoTheBlock
If LTC fails to achieve significant growth in the coming weeks, its price risks falling into a vicious downward spiral.
On-chain data hints at continued selloff
Readings of key on-chain metrics signal that LTC price correction is not over yet. As shown in the chart Saintlymost investors who bought an asset in the last 30 days have unrealized gains of around 7%.
Source: Saintly
This means that they have enough wiggle room to sell even more of their holdings until the Litecoin price gets close to their break-even point in the $77 region.
LTC price forecast: possible correction towards $75
Given the factors discussed above, LTC is at risk of falling below $75 in the coming days. However, 926,000 addresses that purchased 4.96 million coins at an average price of $77 will give him some support.
Source: IntoTheBlock
In the event of a rebound above $90, the initiative will go to the bulls. However, 371,000 wallets that bought 2.62 million Litecoins at a maximum price of $85 could take profits and trigger another reversal.
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2023-08-07 18:32:00
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