The LTC price comes under pressure just hours before the Litecoin halving event ahead on Wednesday.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
3 mins read
Later today on Wednesday, August 2, the Litecoin blockchain network shall undergo the much-awaited halving event and the third such event in its 12 years of history.
During a Twitter live stream last week, Litecoin creator Charlie Lee explained that the halvings in Litecoin help with mass adoption without compromising the security of the network.
Like Bitcoin, Litecoin also uses a “proof-of-work” security system that involves miners using computational resources to process transactions and keep the network secure. Miners receive rewards, a mix of transaction fees and a fixed “subsidy,” which gets halved every four years (specifically, every 840,000 transaction blocks) to control the rate of new Litecoin creation.
As the Litecoin halving closes in, the social engagement around LTC has sparked up significantly. During the month of June, the LTC transactions contributed 35% of all the crypto payments in the month.
🚀 Litecoin activity is leading the market right now.
📊An analysis…
1⃣ A major social engagement spike to 2.16M social engagements within one hour occurred. This measures the depth of activity around social posts. Things like retweets, comments, etc. are included here to… pic.twitter.com/GY6qCLVR9S
— LunarCrush (@LunarCrush) July 30, 2023
As a result, Litecoin has surged ahead and dethroned Bitcoin as the leading payment cryptocurrency. With a consistent increase in Litecoin’s trading volume, the altcoin is significantly expanding its presence in the crypto payment arena.
In the past, Litecoin’s price has shown a pattern of fluctuations leading up to halving events. There have been price rallies before halvings, followed by substantial pullbacks. Notably, the first halving event led to an 820% price rally, while the second event caused a 550% price increase. However, after these rallies, there were significant price declines.
With the third halving approaching in the crypto world, experts and analysts are closely examining its potential impact on Litecoin’s price. Santiment, a top crypto analytics platform, predicts that Litecoin holders may trade within a range of $9.5k to $950k. This optimistic outlook indicates a bullish sentiment in the market and high expectations for the upcoming event.
After a strong rally back in June, the Litecoin (LTC) price has come under some selling pressure. Over the last month of July, the LTC price has been heading downwards and has been heading to $90. On-chain data provider Santiment explains that there’s strong trader capitulation just hours before the halving. It noted:
“Is Litecoin going through a “buy the rumor, sell the news” scenario with less than 9 hours until the 16:34 UTC halving? Social dominance has predictably jumped with many showing panic signs. Patience through the $LTC volatility is proving to be tough.”
Photo: Santiment
#Litecoin trades between two significant supply walls ahead of the #halving.
One acts as support between $87 and $90, where 625K addresses bought 7.8 million $LTC. The other one acts as resistance between $90 and $93, where 590K addresses hold 6 million #LTC. pic.twitter.com/PJjJR4TeHO
— Ali (@ali_charts) August 2, 2023
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
