Grayscale's Win Breathes Life Into Litecoin, Post-Halving Rally On?

In a refreshing ruling on August 29, the United States District of Columbia Court of Appeals said the stringent Securities and Exchange Commission (SEC) was, after all, wrong in denying Grayscale to convert their over-the-counter (OTC) Bitcoin Trust (GBTC) into a Bitcoin spot exchange-traded fund (ETF). The regulator had previously barred the conversion of the GBTC to an ETF, citing an alleged absence of measures to prevent price manipulation, forcing Grayscale to sue.

Timeline of Litecoin

There was an FVG on the H4 chart that extended from $65.97 to $72.79 that Litecoin left behind during its rapid descent on 17 August. Therefore, a bounce to $72 was possible to fill this gap.

Litecoin (LTC) price hit a third consecutive post-halving crash when it tumbled 24% on August 17, dropping to a 2023 low of $56. Historical on-chain data provides insights into how Litecoin investors reacted to similar price crashes in the past.

Litecoin (LTC), the altcoin often dubbed as “silver to Bitcoin's gold,” has found itself caught in the downward spiral of the cryptocurrency market, mirroring the struggles of its larger counterpart. While LTC's association with Bitcoin has long been a double-edged sword, the recent price crash is putting on the spotlight the intricate interplay between these digital assets.

Litecoin was one of the notable movers during Friday's crypto blood bath, as markets reacted to speculation that Spacex had sold over $370 million in bitcoin. Today's sell-off saw the global market cap fall by roughly 6.20%, at the time of writing. XRP also fell significantly.

Shiba Inu (SHIB) has leapfrogged Litecoin (LTC) on the cryptocurrency rankings following the market shake-up on Thursday. While SHIB held firm at the $0.000008 support, Litecoin (LTC) hit a yearly low of $56, taking its market capitalization below $5 billion in the process.

The Litecoin (LTC) price has hovered within the $81 – $85 range over the past week. A closer look at the underlying on-chain data analyzes the plausibility of bearish predictions that LTC prices may sink below $65 in the coming weeks.

Crypto analytics platform Santiment says that Litecoin (LTC) is flashing bullish after its August 2nd halving event. In a new video strategy session, Santiment's director of marketing Brian Quinlivan says that it appears the peer-to-peer payments network is forming a bullish divergence as sharks and whales continue to accumulate LTC as price dips.

One week after the highly anticipated Litecoin halving event on August 2, on-chain data reveals that the network's hash rate, a key measure of computing power channeled to the network, is steady but erratic. As of August 9, trackers indicate that the Litecoin network's hash rate is hovering around 760 TH/s, a notable decrease from the all-time peak of 816 TH/s recorded in late July 2023.

Litecoin (LTC) is reaping the dividends of its halving as more mega marketplaces are now showing their support for one of the tokens built on the protocol as LTC20, LITE, through a timely listing. LITE Goes Live on Gate.io For the first time since its halving event, Litecoin's LITE token has tapped a mega listing

It was observed that most long-term holders are still holding on to their LTC. While this confirms that the long-term market sentiment remains bullish, it has certainly not been the case for the short-term outlook.