The price of Bitcoin dropped to $34,200 and was influenced by macro winds shortly before the US markets opened. This is not good news because we will see more critical data being released in the coming days. We have already mentioned that this week will be an important test for Bitcoin. So, what is the current situation for Litecoin (LTC)?
Litecoin (LTC) Commentary
The price of LTC Coin is currently at $69.6, and Bitcoin has also experienced a slight drop. While many cryptocurrencies have seen massive rallies, the price of LTC has lagged behind. We saw double-digit increases in the price of Litecoin (LTC) before the halving. Then, the expected decline based on historical data became a reality. We also witnessed strong dip tests as miner sales followed this expectation.
Now, let’s turn to today. Although the price did not make significant gains in the recent BTC rally, there are signals indicating an upward trend. Miners are now moving in the opposite direction and their accumulation trend reflects a belief that the price will rise.
Following the Litecoin halving event on August 2nd, miners sold 500,000 LTC in the month that followed due to the negative sentiment surrounding the ecosystem. This triggered a drop from $90 to $62. However, they started accumulating again since their balances dropped to 2.05 million on September 6th. As of today, miners have a total of 2.41 million LTC.
If miners want to return to their pre-halving reserves, they can make additional purchases of approximately $10 million, which would fuel the price to reach $80.
LTC Price Analysis
Before the LTC price rally, we saw a significant increase in trading volume. In addition to the accumulation sentiment among miners, the latest data also shows a recovery in trading volume. Litecoin trading volumes reached 17.8 million LTC on October 27th, which is very close to the volume peak seen before the halving.
An increase in trading volume, especially during a general market uptrend, can be considered as a bullish signal for price. If miner demand and trading volume continue to increase, the groundwork for a journey to $80 can be established.
