Litecoin (LTC) Shows Bearish Signs: Here Are the Reasons Why Price Could Reach $65

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.

Timeline of Litecoin

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.

Data shows that Litecoin long-term holders exited the asset before the halving, while short-term holders were left to panic on the halving day. The “halving” here refers to an event where the block rewards of Litecoin are permanently cut in half.

Since their debut on August 1, perpetual futures contracts for XRP and Litecoin (LTC) have seen a staggering $43.7 million in trading volume on Coinbase International, according to recent data shared by the exchanges.

Halving events are significant milestones that garner substantial attention. They reduce the reward for mining new blocks, making the cryptocurrency scarcer and, in theory, more valuable.

Litecoin (LTC) has recently faced a period of bearish pressure that has taken a toll on its market performance. The months of July and August have witnessed a shift in sentiment, as bearish forces began to dominate the crypto market.

Barely 48 hours after the completion of the Aug 2 Litecoin Halving, the LTC price has dropped 12%, losing the critical $85 support. As whale investors and long-term holders begin to dump, will the bearish momentum worsen?

The Litecoin (LTC) halving event took place earlier this week, to the amusement of every member of the crypto ecosystem. The halving is the third in the Litecoin ecosystem, and a lot of hype was generated prior to the event amid broad anticipation that the price will soar following the halving.