The much-anticipated halving event of Litecoin on August 2 has resulted in a 15% price correction from $94 to the $80 region. Such a pointed motion has raised eyebrows and generated heated debate among cryptocurrency businesses. Nonetheless, there is promise for bullish momentum because the LTC value has stopped falling and has turned upwards from its low. This indicates that bullish players are entering the game, positioning the LTC value to recapture its previous momentum.
Long-Term Investors Gain Regardless of Miners’ Selloff
Because of the “promote the information” pattern, the value of Litecoin decreased significantly when it was halved. Many knowledgeable buyers anticipated this. Long-term investors purchased during the value increase, most likely anticipating the peak. However, the subsequent value drop was driven by short-term holders, with the current average holding duration being around a month, indicating they’re quickly selling to avoid losses.
According to the most recent on-chain data from IntoTheBlock, LTC miners purchased $90,000 in cash from their reserves in the last 5 days. On August 3, miners had a total of 2.49 million LTC, which had dropped to 2.4 million LTC on August 7.
With the incentive for mined blocks halved to 6.25 LTC, many miners may have to sell additional to cover increased mining costs.
Regardless of current obstacles, the increased stability over time provides a bright outlook. Despite LTC’s bearish trend over the last year, the number of holders continues to grow. While there were approximately 32 million investors during the 2021 bull run, that number has now surpassed 41 million, despite the fact that the LTC worth has struggled to get beyond $100. This means that long-term investors remain bullish.
What’s Next For LTC Value?
LTC value has shown a remarkable recovery surge in the last 24 hours, with buyers purchasing near the $79.50 low. Bears attempted to break beneath the bearish consolidation but were thwarted when buyers triggered a rise over the 0.038 Fib channel. LTC value broke through the consolidation at $83 and continued to rise.
LTC value has recently risen over the EMA20 pattern line and is now attempting to extend its rise by maintaining a momentum beyond the EMA50, which will almost certainly attract further buyers. The rising EMA strains and the RSI degree buying and selling over the midline indicate that bulls have complete control of the price chart.
If the price continues to rise, it will soon pass the resistance of $88, which would push the price even higher towards its fundamental resistance of $95.