Recently, data analytics firm IntoTheBlock highlighted the significant downturn in Litecoin’s price following its highly anticipated halving event. The occurrence of a ‘sell the news’ situation, anticipated by a number of market observers, materialized as the price of Litecoin experienced a marked decline.
Taking place approximately every four years, similar to Bitcoin halvings, this event reduces miner rewards by 50%, thereby limiting the creation of new tokens. LTC is frequently likened to digital silver within the cryptocurrency community, much like BTC’s comparison to digital gold.
Notably, individuals who had maintained their positions over the long term seemed to have positioned themselves well for this eventuality. The accompanying chart presented by IntoTheBlock showed the average duration for which coins were held before being transacted.
The chart revealed distinct spikes that indicated periods of movement by long-term holders. Intriguingly, during the phase of upward price momentum, a notable number of these long-term holders were actively engaging in transactions, potentially capitalizing on the rally by selling their holdings.
However, the recent downturn in Litecoin’s price was primarily instigated by short-term holders. The data indicated that the average duration for which coins were held before being transacted had now dwindled to approximately one month. This shift towards shorter holding periods suggests that short-term holders offloading their holdings might propel the downward trajectory in price to curtail their losses.
Litecoin Latest Price Analysis
However, a recent price analysis indicates that, as of the current moment, the Litecoin price stands at $82.33. This price level is accompanied by a 24-hour trading volume of $413 million, reflecting a notable 50% increase. Over the last 24 hours, Litecoin has experienced a decline of 0.18%.
Market projections regarding the price of Litecoin suggest a potential drop of approximately -5.57%, with expectations that it might reach $78.00 by August 12, 2023. In terms of technical analysis, prevailing indicators point towards a bearish sentiment. Meanwhile, the Fear & Greed Index registers a reading of 54, signifying a neutral sentiment.
Examining recent performance, Litecoin has demonstrated 12 out of the last 30 days as green, equating to 40% of the period being characterized by positive price movements. Moreover, the coin has exhibited price volatility of 4.64% over the past 30 days.
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