Litecoin price coils less than 1,000 blocks away from the LTC halving event
- Litecoin price sustained above key support at $90, with the LTC halving event closing in.
- The altcoin is less than 1,000 blocks away from the halving that is set to occur at block height 2,520,000.
- LTC dolphin and shark addresses have aggressively accumulated LTC since June 14, in anticipation of a possible post-halving price rally.
Litecoin is inching closer to the most anticipated event, its halving, scheduled to occur on August 2. The altcoin’s price sustained above the $90 psychological barrier, ahead of the mining reward being slashed in half.
LTC halvings have typically resulted in a price rally in the altcoin. LTC holders and large wallet investors anticipate a similar outcome this time around and have consistently accumulated the token since mid-June 2023.
Also read: Ethereum buying spree likely in August as DAI whale holdings climb higher
Litecoin halving is less than 1,000 blocks away, counting down
Halving events in Bitcoin and Litecoin have long been considered typical bullish catalysts for the assets. BTC and LTC prices tend to rally in the weeks and months following the halving event, with a considerable decline in circulating supply and selling pressure on the assets across exchanges.
According to data from a halving countdown tracker at Nicehash, the LTC halving is set to occur at block height 2,520,000, less than 1,000 blocks away.
Litecoin halving countdown on Nicehash.com
Interestingly, crypto intelligence trackers have noted an increase in LTC holdings in the portfolios of large wallet investors.
Litecoin wallet accumulation as seen on July 30, 2023
The above chart from crypto intelligence tracker Santiment has recorded the addition of 205,400 LTC tokens between June 14 and July 30. These traders scooped up large volumes of LTC ahead of the halving, anticipating an upcoming rally in the altcoin across exchanges.
The consistent demand for the altcoin is one of the factors that helped the price sustain above the key psychological level of $90.
Why some analysts are bearish on LTC price
A pseudonymous crypto analyst behind the handle @cryptokaleo is short on Litecoin despite the upcoming halving. Kaleo argues that he wouldn’t be surprised to see a bounce in LTC price, however, he is “short” on Litecoin in the long term.
The analyst explains his stance through the events that followed the previous halving on August 5, 2019. While the event was hyped as a bullish one for the asset, LTC price declined in the aftermath of the halving.
Just a reminder - $LTC halving is in two days.
— K A L E O (@CryptoKaleo) July 31, 2023
Wouldn’t be surprised if there’s a little bounce associated with it, but read through the thread and you’ll see why I’m still short.
Fwiw I’m a boomer and I like Litecoin, but unfortunately liking a coin doesn’t always mean it’ll…
LTC/USD price chart
Kaleo’s bearish thesis stems from the likelihood that halvings close to the local top of the altcoin are typically bearish for the asset in the long term, and the analyst expects LTC price to rally for a week or two before correcting lower by the end of 2023.
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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.
