HomeNewsLitecoin Encounters Turbulence: Halving Event Stimulates Sell-Off Fears

Litecoin Encounters Turbulence: Halving Event Stimulates Sell-Off Fears

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  • Litecoin (LTC) price experiences a 20% decline as fears of the upcoming ‘halving event’ result in sell-offs by long-term holders.
  • The market surplus of LTC coins on various crypto exchanges exacerbates the downward pressure on the asset’s price.

The cryptocurrency market is currently facing tremors as Litecoin (LTC), a popular digital currency, records an 18% decline in price, dropping to $89 from a recent peak of $115. This unsettling activity emerges as the shadow of an anticipated ‘halving event’ looms over the cryptocurrency ecosystem.

Long-Term Holders Unload LTC Assets

This halving event, scheduled for August 2, traditionally induces a market retrenchment, inciting a feeling of unease within the Litecoin community. Data sourced from Santiment, specifically the ‘Age Consumed’ figures, indicate a marked increase in sell-offs initiated by long-standing LTC holders.

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The ‘Age Consumed’ metric is a measure of trading activity among veteran holders and is calculated by multiplying the number of tokens recently exchanged by the duration since their last movement. The spikes observed in this parameter suggest an increased inclination among these holders to liquidate their LTC assets, a trend that could potentially catalyze a price drop.

Increasing Sell Pressure Pre-Halving

The market reflects this growing apprehension with a surge in LTC sell-orders across multiple crypto exchanges, exceeding buy-orders by a substantial degree. The current scenario depicts an imbalance with approximately 465,000 LTC coins up for sale, overshooting the active buy-orders of 339,000 LTC.

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The ‘Exchange On-chain Market Depth’ graphically represents this asymmetry, illustrating a scenario where supply markedly outstrips demand. Such an excess of supply exerts additional downward pressure on the asset’s price as traders could lower their selling prices to expedite order fulfillment.

Support at $85: A Crucial Standpoint

The ‘Global In/Out of the Money’ (GIOM) data, provided by IntoTheBlock, projects a substantial price correction for LTC if the asset value slips below the key support level of $85. However, this potential downward trend could be resisted by the roughly 570,000 addresses that have acquired 2.18 million LTC at a minimum price of $85.99.

The Litecoin price trajectory hinges on the robustness of this support level, and the potential for a price rebound above $95 could allay fears of a post-halving price crash. Yet, the impending halving event continues to stir market anxieties, pushing investors into a state of watchful anticipation.

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Jack Williams
Jack Williams
As a Blockchain Analyst, I specialize in analyzing the performance of decentralized systems and optimizing their efficiency. Through data analysis, I provide insights on blockchain technology, smart contracts, and cryptocurrencies to help businesses make informed decisions and improve their operations.
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