Litecoin price remains asleep despite oncoming halving, narrative shifts toward other altcoins

Litecoin (LTC) price trades with a bearing inclination, recording lower lows amid waning momentum. Surprisingly, the token has a bullish event on the calendar, closing in fast but remains on a downtrend anyway. The defiance has seen LTC miss out on the recent boom crypto markets enjoyed following Ripple (XRP) partial victory against the US SEC.

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Litecoin price shows defiance

Litecoin (LTC) price is on a downtrend, losing 10% in the last day. This move has seen LTC lose critical support at $98.71, flipping it back to resistance. The movement is similar to its peer, Bitcoin Cash (BCH), another Bitcoin (BTC) crypto fork.

The Litecoin halving is barely three weeks away, slated for August 2, 2023. The event will see the block rewards given to miners when they validate transactions slashed by 50%, from 12.5 LTC to 6.25 LTC. It helps reduce the token supply of new LTC coming into the market, thus a driver for price increases.

Based on the recent price action for the altcoin, experts say it is more challenging to predict its reaction toward the event. While it is expected to increase its value by reducing supply, sleuths argue that the halving may inspire a short-term sell-off in LTC. Among the reasons for the sell-off is the provocation among miners to sell their tokens to cover their mining costs.

 After a decisive loss of the $98.71 support level, the odds favor the downside, with the Relative Strength Index (RSI) suggesting falling momentum. Based on CoinMarketCap data, the 24-hour trading volume for LTC is down 20% to show a reduced interest for the altcoin in the meantime.

LTC/USDT 1-Day Chart

Meanwhile, the narrative has shifted to other altcoins, particularly the ones bearing the SEC’s security label. Following the Ripple Labs victory, the court determined that selling altcoins via exchanges makes them commodities, but selling them to institutional players makes them a security. This vindicates the US-based cryotocurrency exchange, Coinbase, to a huge extent. 

Specifically, the focus is now on Solana (SOL), Cardano (ADA), and Polygon (MATIC). Based on a recent report, Solana has just recorded an impressive milestone, with its total value locked (TVL) hitting a yearly high of $1.1 billion.