- Litecoin (LTC) might continue to experience a price drop, based on past halving performance.
- Experts have suggested that the price could undergo a prolonged depression within the $40-50 range for about two months.
- Despite showing signs of short-term recovery, Litecoin (LTC) is experiencing weak buyer interest.
The cryptocurrency market is far from its shining days during the 2021 bull season, with investors grappling with excessive sales for the past two years. This situation underscores that profiting from cryptocurrencies is not as easy as it is often touted during a bull season. Many investors who considered themselves highly skilled when everything was on the rise have been waiting in losses for two years because they could not sell at the right time.
Litecoin (LTC) Commentary
The anticipated halving for Litecoin took place this month. Let’s recall the frequent warnings made by experts for Litecoin. Even two months ago, many experts were voicing that the price was at risk of falling as the August halving date approached. Significant price drops were observed after the event in the previous two halving periods. Now, with the support of the melting price in BTC, the price of LTC Coin is experiencing the same fate.
Another thing experts have been mentioning for two months is that the price could experience a depression process at the $40 levels for months. It’s hard to predict where the price will go as it’s only been a month since the halving. However, if BTC does not experience a significant recovery, they could be right about this too. We clearly see why historical data should not be ignored in our evaluation of the relationship between Litecoin halving and price.
Should LTC Coin Be Purchased?
The price of LTC, at $65.47, represented a 63% premium from the lowest price point during the crypto winter. On the other hand, there was a 43% discount compared to the highest price point in July. Although the discount of LTC compared to the highest levels of July represents a healthy discount, it was much steeper when we consider its historical peak. Based on ATH discounts, we can conclude that LTC has appreciated more compared to its peers.
Remember that Litecoin bears seemed to take a break after dominating since July. The price also sends oversold signals and is at a support level tested previously in March. Technically, considering the support and oversold conditions as well as the large discount, we may see some accumulation in this region.
On the other hand, the investor group holding between 10 and 1000 LTC started accumulating. But the number of daily active addresses, which feeds negativity, has significantly decreased since the beginning of August. The MVRV ratio was supporting the possibility of an increase.
In conclusion, the price may be expensive according to historical data. The same historical data had experts talking about the price experiencing a long depression process in the $50 region for two months.
