Litecoin’s highly anticipated halving on August 2 has resulted in a 15% price correction from $94 to $80. Such a sharp move has raised eyebrows and sparked intense debate among crypto traders. However, there is hope for bullish momentum as LTC price halted its downward trajectory and turned up from the lows. This suggests that bullish players are getting into the game and positioning the LTC price to regain its previous momentum.
Long-Term Holders Increase Despite Selling Out by Miners
After the Litecoin halving, the price fell significantly due to the sell the news trend. Many experienced investors had expected this. Data shows that long-term holders sold during the price hike, possibly predicting the spike. However, the subsequent drop in price was driven by short-term holders, with the current average holding time being around a month, indicating that they sell quickly to avoid losses.
Recent on-chain data from IntoTheBlock reveals that LTC Miners have sold 90,000 coins from their reserves in the past 5 days. On August 3, miners had a total of 2.49 million LTC, which dropped to 2.4 million LTC on August 7.
With rewards for mined blocks halving to 6.25 LTC, many miners may need to sell more to cover rising mining costs. If Litecoin does not see a profit soon, the price could fall sharply.
Despite the recent challenges, the increasing balance over time offers a promising picture. Even with LTC’s bearish trend over the last 12 months, the number of holders continues to grow. While there were about 32 million holders during the 2021 bull run, that number is now over 41 million, even as the LTC price struggled to climb above $100. This suggests that long-term holders remain bullish.
What’s next for the LTC price?
The LTC price has shown a remarkable recovery rally over the past 24 hours as buyers bought near the $79 dip. Bears tried to break below the bearish consolidation but failed as buyers sparked a rise above 0.038 Fib channel. The LTC price broke the consolidation to the upside at $83 and continued to rise. At the time of writing, the LTC price is trading at $84.1, up more than 3% in the past 24 hours.
The LTC price has recently climbed above the EMA20 trendline and is now aiming to continue its rise by maintaining momentum above EMA50, which is likely to attract more buyers. The rising EMA lines and the RSI level trading above the centerline suggest that bulls have complete control over the price chart.
If the price continues to rise, it will soon clear the $88 resistance which will further push the price towards its crucial $95 resistance.
For a bearish reversal, the price must fall below the bearish channel pattern at USD 80. If successful, sellers will be able to deposit the token to a $75 crucial support.