LTC/USD price halved after halving, hash rate dropped by 70%
|- LTC/USD has been moving within a bearish trend since August.
- The initial resistance on the approach to psychological $50.00.
Litecoin (LTC), the sixth-largest digital asset with the current market capitalization of $2.9 billion, has been one os the worst-performing coins of the month out of top-20. The coin has lost over 25% of its value in the latest 30 days and settled at $45.70 by the time of writing. While the coin managed to recover from the recent bottom at $42.35 (November 25), the upside momentum is still nowhere to be seen.
Halving woes
Fundamentally, Litecoin (LTC) has stayed under pressure since the halving event that took place in August. The coin has lost nearly half of its value since that time.
Moreover, Litecoin’s hash rate has decreased by almost 70% since the halving, which means that miners are not incentivized to support the network anymore. Falling prices and reduced remuneration fee make LTC mining unprofitable at this stage. Litecoin's hash rate hi the high above 500TH/s in July and collapsed to 166.7 by the time of writing.
Litecoin's technical picture
On a daily chart, LTC/USD is moving in a tight range, limited by the middle line of the daily Bollinger Band on approach to $47.00. Once it is out of the way, the upside is likely to gain traction with the next focus on $49.30, which is the upper boundary of the recent consolidation channel. It is followed by psychological $50.00 and the upper line of the daily Bollinger Band at $52.00.
On the downside, a sharp decline below $45.00 will increase the sell-off pressure and push the price towards $43.50. This barrier is created by the lowest level of the previous week and the lower boundary of the above-said channel. Once it is broken, November 25 low of $42.35 will come int view.
LTC/USD, the daily chart
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