- Litecoin trades in the consolidation phase since halving in early August.
- Reduced mining rewards to 6.25 LTC caused a bearish LTC price reaction.
- Pro trader spots nearly identical price correlation with Litecoin’s early days.
Shan Belew, a Litecoin maximalist and professional crypto trader, shared a correlation chart between $LTC’s post-halving price movement and resembled the pre-run stages of 2015-2017. Belew ties it to Litecoin’s fair network value model, as the network is a fork of Bitcoin (BTC), the leading cryptocurrency.
According to the trader, Bitcoin’s upcoming halving next year might also have a strong correlation with Litecoin’s price. At press time, the OG altcoin Litecoin (LTC) trades at $81.81, according to CoinGecko. The 1.3% drop in the last 24 hours added to the 12.9% deficit since the Litecoin halving occurred at block height 2,520,000.
Crypto Bears Want a Bite of Litecoin?
“Would love for this to play out,” says crypto enthusiast Tom Hora on Twitter, adding a praying hands emoji for good luck. However, the road to glory for the veteran altcoin will not come easy, as the on-chain metrics point to mostly bearish technical indicators.
The moving average convergence divergence indicator (MACD) is consistently below the signal line, while the Moving Average (MA) slid to 82.555 from 83.917 recorded last week. Moreover, the on-chain data provided by blockchain analysis platform GNY Range Report suggests Litecoin remained below 40 RSI for most of the week, putting $LTC in an oversold condition.
The crypto behavior analysis platform IntoTheBlock confirms the bearish trend, pointing to a downward trend in both net network growth and large transactions. Interestingly, $LTC seems to have a historically frequent correlation with Bitcoin, which now has dropped to 0.54, signaling a bumpy road for the veteran altcoin.
On the Flipside
- Litecoin scooped up $307 million in trading volume in the last 24 hours, more than the 4th largest crypto by global market cap, BNB.
- The constant trading volume during bear cycles hints at the blockchain’s resilience, even though it’s 80% below its all-time high of $410 set on May 10th, 2021.
Why This Matters
Litecoin’s halving policy was written into LTC’s mining algorithm to counteract inflation by cutting the rewards in half every four years to maintain the scarcity of $LTC coins in circulation.
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