Litecoin’s much-anticipated halving event on Aug 2 has resulted in a 15% price correction from $94 toward the $80 territory. Such a sharp movement has raised eyebrows and sparked intense discussions among crypto traders. However, there’s a hope of bullish momentum as the LTC price ceased its downward trajectory and pivoted upwards from its low. This suggests that bullish players are stepping into the game, positioning the LTC price to regain its previous momentum.
Long Term Holders Increase Despite Selloff By Miners
After Litecoin’s halving, its price dropped significantly due to the “sell the news” trend. Many experienced investors expected this. Data shows long-term holders sold during the price rise, possibly predicting the peak. However, the subsequent price drop was driven by short-term holders, with the current average holding time being around a month, indicating they’re quickly selling to avoid losses.
Recent on-chain data from IntoTheBlock reveals that LTC Miners sold 90,000 coins from their reserves in the past 5 days. On Aug 3, miners had a total of 2.49 million LTC, which decreased to 2.4 million LTC by Aug 7.
With the rewards for mined blocks halving to 6.25 LTC, many miners might need to sell more to cover increasing mining expenses. If Litecoin doesn’t see gains soon, its price might face a sharp decline.
Despite recent challenges, the increasing balance by time held offers a promising view. Even with LTC’s bearish trend over the last 12 months, the number of holders continues to grow. While there were around 32 million holders during the 2021 bull run, that number has now exceeded 41 million, even as the LTC price struggled to surge above $100. This suggests long-term holders remain bullish.
What’s Next For LTC Price?
LTC price has shown a notable recovery rally in the last 24 hours as buyers bought near the dip of $79. Bears tried to break below the bearish consolidation but failed as buyers triggered a surge above 0.038 Fib channel. LTC price broke the consolidation upward at $83 and continued to surge. As of writing, LTC price trades at $84.1, surging over 3% in the last 24 hours.
LTC price recently climbed above the EMA20 trend line and is now aiming to continue its surge by maintaining a momentum above EMA50, which will likely onboard more buyers. The surging EMA lines and the RSI level trading above the midline suggest that bulls have complete control of the price chart.
If the price continues to move upward, it will soon clear the resistance of $88, which will further push the price toward its crucial resistance at $95.
For a bearish turnaround, the price must decline below the bearish channel pattern at $80. If successful, sellers might plunge the token to crucial support of $75.
