Why is Litecoin’s price down today?

Litecoin’s (LTC) value is down immediately, mirroring draw back strikes elsewhere in the cryptocurrency market.

LTC value fell over 1.5% on Aug. 16 to round $78.25, underperforming the remainder of the crypto market, which dropped 0.65% in the identical interval. The draw back transfer got here as part of a broader pullback development that began in early July.

Litecoin halving turns into “promote the information”

The crypto market decline coincided with the U.S. greenback index’s (DXY) restoration, as Cointelegraph mentioned here.

Nonetheless, Litecoin’s correction began every week sooner than the crypto market’s, pushed by its overbought relative energy index (RSI) and a drying shopping for sentiment within the days main as much as its “halving” on Aug. 2.

LTC value has dropped over 30% because the day its RSI crossed the overbought threshold studying of 70. In the meantime, when measured from the halving day, the value is down 16.45% — hinting at a “sell the news” situation extending into Aug. 16’s bearish session.

LTC ‘hodling’ sentiment sturdy by way of selloff

Information monitoring addresses which have held Litecoin for greater than 155 days — aka “hodlers” — present a persistent accumulation sentiment.

Notably, the month-to-month Hodler Net Position Change metric flipped from damaging to constructive on July 23 and has remained the identical ever since. In different phrases, Litecoin’s most loyal traders have  collected LTC tokens forward and after halving, displaying their bullishness towards its market.

Nonetheless, Litecoin’s richest traders — or whales — look like on the forefront of the continuing LTC selloff, in line with Santiment information. 

As an example, the Litecoin provide held by addresses with a 1 million to 10 million LTC steadiness has declined by 0.5% because the having. Equally, the 100,000-1 million LTC provide cohort has dropped 1% in the identical interval.

A typical post-halving selloff?

Unbiased market analysts Rekt Capital highlights the continuing Litecoin selloff as a typical occasion that succeeds the coin’s halving. However ultimately, the value discovers a so-called “accumulation vary” and follows it up with a pointy rebound to ascertain a brand new document excessive.

Traditionally, LTC has retraced between -73% and -83% after its Halving occasion to kind a brand new Accumulation Vary (black),” argued Rekt Capital, including:

“To this point, LTC has retraced [by up to] -31% after its most up-to-date Halving.”

In different phrases, if the historic cycle repeats, Litecoin will fall towards $40 within the coming months, down about 50% from the present value ranges.

Litecoin value prediction in Q3/2023

Technicals, nevertheless, are barely extra upbeat for LTC value. Presently, Litecoin’s value traits decrease inside a falling wedge sample, elevating the prospects of a bullish reversal within the coming days or perhaps weeks.

Associated: SEC delays set deadlines for Bitcoin ETF approval to early 2024

Falling wedges kind when the value fluctuates inside a variety outlined by two descending, converging trendlines. They resolve after the value breaks out of the vary to the upside and rises towards the extent at top equal to the utmost distance between the 2 trendlines.

As of Aug. 16, LTC value was eyeing a breakout above the wedge’s higher trendline. Relying on the breakout level, LTC/USD can rise to anyplace between $83.25 and $95.75 by October, up 6% and 20%, respectively, from the present value ranges.

This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer entails threat, and readers ought to conduct their very own analysis when making a call.