Just 48 hours after the completion of the halving, the price of Litecoin (LTC) fell by 12%, losing the critical $85 support level.
On August 2, the Litecoin network experienced the third halving, as a result of which the reward for miners per mined block was reduced from 12.5 to 6.25 LTC. In just 2 days after the event, the price of the asset sank from $94 to $83. However, the readings of key on-chain metrics hint that the correction may drag on for a long time.
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Whales get rid of Litecoin
According to the analytical platform Saintly, whales became the driving force behind the large-scale sale of Litecoin against the backdrop of halving. Between July 29 and August 4, the total balance of wallets holding from 1,000 to 100,000 LTC decreased by 60,000 coins.
Source: Saintly
With the current market price of $83, the value of the tokens sold by the whales is about $5 million. Such a significant outflow of funds in just six trading days is a serious bearish signal. If retail investors start to get rid of LTC following the big players, the price of the asset may drop below $80 in the coming days.
Long-term LTC holders follow the lead of the whales
Another important factor that has influenced Litecoin price dynamics is the selling pressure from long-term holders. This is also confirmed by the indicator Age Consumed. From August 1 to August 3, its values soared by 800% – from 3.96 million to 37.03 million.
Age Consumed gauges sentiment among long-term investors by tracking how many coins that have been in circulation for a long time are currently trading. It is determined by multiplying the number of recently sold tokens by the number of days that have passed since they were last moved.
An 800% jump in three days means that many long-term holders have begun to sell. Not surprisingly, the price of LTC dropped sharply during this period.
Litecoin Price Prediction: $80 Support Might Be Unstoppable
The Litecoin bears seem to be intent on breaking through to the $70 target. However, on their way to this mark, they will have to overcome a wall of 1.53 million addresses that bought 9.31 million LTC at an average price of $80.30. If it does not hold, the asset quotes may decline to the next important support area at $72.
Source: IntoTheBlock
However, the bulls still have a chance to seize the initiative and provoke a rebound towards $90. However, first they will have to deal with resistance from 513,570 wallets that purchased 1.22 million Litecoins at an average price of $87.77.
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2023-08-04 14:08:24
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