Litecoin (LTC) has failed to keep up pace with its pre-halving growth trends.
General market sentiment remains a bane for Litecoin price surge.

The current chart outlook is suggesting that Litecoin’s (LTC) price is poised to lose some of the significant gains that it amassed following the halving event earlier in the month. The coin which is often referred to as the silver to Bitcoin’s (BTC) gold had previously taken support at around $80 after its last halving event in 2019. 

Within 24 hours of the recent halving event, LTC surged by 5.48% taking the price of the token from $89.40 to $94.30, a growth that is now appearing unsustainable.

Markedly, the change in momentum attracted whales and sharks who perceived the coming of a bullish resurgence on the network. Litecoin began to see a reasonable jump in the total number of wallet addresses holding between 100 to 10,000 LTC. Altogether, these whale investors hold about 31.5 million LTC tokens. Despite this broad-based backing, the broad crypto industry slumped into a turbulent season last week and the price of many altcoins, including Litecoin dropped significantly.

Litecoin joined the steady decline and by August 15th, it was trading as low as $82.15 with the bearish trend expected to continue. The decline persisted until the token went past its recent support threshold of $70. 

The negative momentum was however, short-lived as the market began to recover slightly. Blockchain analytic platform Santiment noted on X (formerly Twitter) that LTC is one of the assets that has recorded significant gains since the steady recovery of most altcoins. Two other altcoins ranked with LTC are Ripple XRP and its rival Stellar (XLM).

Yesterday, IntoTheBlock data showed that both LTC and Dogecoin’s (DOGE) on-chain interaction experienced a remarkable increase unlike top crypto asset BTC. Amidst the sluggish movement of the broad crypto industry, Litecoin showed 231,270 active daily users and DOGE recorded 46,080 of this kind of addresses. During this time, the price of the LTC token was sitting at $64.77.

Chart Data Suggest Litecoin Price Downtrend

At the time of this writing, LTC is trading at $66.29 after it gained 0.97% in the past 24 hours. The asset’s market value to realised value ratio are suggesting that holders are still selling at a loss and this will play a crucial role in reversing price surge. 

While there has been a slight uptick in the past 24 hours, in the last seven days LTC has lost over 20% of this market value. A look at its daily chart gives the impression that LTC will lose more of these gains in a few days’ time. 

Most metrics are suggesting an incoming downward trend for LTC. Its Awesome Oscillator (AO), which is a momentum indicator for potential market reversal, has posted downward-facing red histogram bars. This indicates that LTC’s AO is negative with a value of -18.89 and this may as well mean the coming of a bearish crossover.

LTC On-Balance Volume (OBV) has also followed a downtrend in the last week and its beginning coincided with the period when its AO became negative, ultimately confirming the bearish trend. In essence, traders can remain optimistic about LTC but should manage their risks effectively.

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Filed under: Bitcoin - @ August 22, 2023 3:10 pm