Litecoin Price Drops to Lowest Level in Weeks as Halving Hype Fades
The price of Litecoin (LTC) has been performing worse than the market overall as the excitement around its halving event diminishes. LTC dropped to a low of $80, its lowest level since June 21st. It has decreased by over 28% from its peak earlier this year.
The price movement of Litecoin reflects the overall performance of the crypto industry. Bitcoin, its biggest competitor, has remained at around $29,000 in recent weeks. Similarly, the total market capitalization of all cryptocurrencies remains at $1.12 trillion.
Litecoin’s price has ignored several significant events in its ecosystem. Last week, the halving took place, a process that reduces block rewards for miners in its network. Historically, Litecoin and other cryptocurrencies tend to show some volatility before and after a halving event.
Furthermore, it mildly responded to the downgrade of US debt by Fitch, one of the three major credit rating agencies, last week. Ideally, the credit rating downgrade should have been beneficial for Bitcoin and other cryptocurrencies as they are designed as alternatives to the US dollar.
Meanwhile, on-chain metrics show that the number of Litecoin transactions has been somewhat muted in recent months. However, the hash rate remains at an all-time high of 800 TH/s.
The hash rate is an important metric that considers the computational power of a network. In most cases, a high hash rate signifies a healthier network.
Litecoin Price Forecast
The future price movement of Litecoin will depend on Bitcoin’s performance as the two are closely correlated. On the daily chart, LTC’s price has fallen below the crucial resistance level of $105.75, the peak in February.
Most importantly, Litecoin has formed something resembling a head and shoulders pattern, which is typically a bearish sign. It has also dropped below the 50-day and 200-day moving averages. The two moving averages are on the verge of a bearish crossover known as the death cross.
The coin has also formed a bearish flag pattern. Therefore, the outlook for the Litecoin price is bearish, with the next key level to watch at $71.20.
How to Buy Litecoin:
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In conclusion, the price of Litecoin has been underperforming compared to the overall crypto market due to the fading hype around its halving event. The future price movement will depend on Bitcoin’s performance, and currently, the outlook for Litecoin is bearish. Traders interested in buying Litecoin can consider platforms like eToro and Public.