After the recovery in Bitcoin price, altcoins have started to rise again. The next few days are crucial. Macro data and ETF decision on Friday can further energize the markets over the weekend. The positive ADP data today has increased optimism about Non-Farm Payrolls. However, despite all this, the price of LTC may stay away from the expected rise.
Last week, Litecoin (LTC) dropped to $56, which is the 2023 low. The drop during the halving period was not surprising. LTC price showed negative performance during and after the previous two halvings. This is due to the motto we are familiar with in crypto, “buy the rumor, sell the news.” Of course, in the medium and long term, if the demand remains the same or increases as the new supply is halved, the price is expected to rise.
With the rally in BTC, the popular altcoin reversed its direction and climbed up to $70. The ongoing price rally was triggered by yesterday’s court decision. However, while other high-volume coins such as Bitcoin Cash (BCH) and Toncoin (TON) are running double-digit gains, Litecoin only experienced a 4% jump.
The Santiment chart below vividly shows how daily LTC trading volumes have gradually increased over the past month. It has increased by 41% from 10.34 million LTC traded on July 25 to 14.6 million LTC traded on August 29.
Typically, this indicates increased demand for LTC, which supports price growth. However, the fluctuations caused by Grayscale’s milestone victory have had little impact on Litecoin bears. Sellers still maintain a dominant position in the order books on exchanges.
Investor cost data shows that there are 8.84 million LTC at $78. Unless a significant event occurs that multiplies the demand, it may be difficult for the price to exceed $80 due to profit-taking.
Based on the current data, it is unlikely that the resistance will be overcome. However, if the bulls succeed, we may see a movement towards $90. On the other hand, in the bearish scenario, the $65 and $60 supports come to the forefront.