Litecoin holders await bullish trend reversal 20 days before the halving
- Litecoin halving is 20 days away, and on-chain indicators of the altcoin have flipped bearish.
- There is a spike in social activity volume in Litecoin ahead of the halving event.
- LTC price has sustained above $100, yielding more than 3% gains for holders overnight.
Litecoin halving, a key event where reward for mining LTC will be slashed from 12.5 LTC to 6.25, is 20 days away. LTC holders are awaiting a bullish trend reversal in the token as price sustains above the key psychological level of $100 close to the halving.
Litecoin on-chain indicators flip bearish ahead of halving
Litecoin, one of the largest altcoins in the crypto ecosystem, is closer to a halving event. According to data from crypto intelligence tracker Santiment, there is a spike in social dominance of Litecoin. Previous increases in this metric coincided with a price correction in LTC. Therefore, this on-chain indicator paints a bearish picture for Litecoin price trend in the short term.
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Litecoin social dominance vs price as seen on Santiment
Other key on-chain metrics, daily active addresses, transaction volume and transaction count, have declined significantly since June 2023. These indicators reflect market participants' interest in the altcoin and the demand for the token across crypto exchanges.
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Daily active addresses, transaction volume and transaction count vs price
Holders are awaiting a shift in on-chain metrics ahead of the halving event. Litecoin price has sustained above the $100 level, currently trading at $100.32, above three Exponential Moving Averages (EMAs), 10, 50 and 200-day at $97.93, $92.09 and $86.75.
Litecoin/USDTether one-day price chart on Binance
Litecoin’s upward trend is likely to be maintained with these long-term EMAs acting as support. A decisive close below the trendline could signal a bearish trend reversal in the altcoin.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
