Litecoin, known as the silver of cryptocurrency, recently reached an important milestone. As expected, the price dropped. Litecoin halving has been one of the hot topics in recent months. Historical data suggested that the LTC price would drop as the halving approached and afterwards. And it did, so what’s the next target?
Why Did Litecoin (LTC) Fall?
Just 48 hours after the completion of the Litecoin Halving on August 2nd, the LTC price dropped by 12% and lost the critical support at $85. We had mentioned that a strong drop to the $80 region could occur when the price was still at $90. And it did, the same thing that happened in the previous two halvings repeated itself in the third one.
On August 2nd, Litecoin completed its third halving event, where the block rewards given to miners were reduced from 12.5 LTC to 6.25 LTC. As observed in the previous halving events in 2015 and 2019, the LTC price dropped to double digits once again.
The price, which reached $94 on August 1st, has already dropped to $83, resulting in a 12% monthly decrease.
LTC Price Prediction
On-chain data indicates that whales led the way in selling. According to data from Santiment, whales with cumulative balances ranging from 1,000 to 100,000 LTC started selling shortly before the Litecoin halving event. As shown below, whales had a cumulative balance of 9.77 million LTC on July 29th. As of August 4th, they have reduced their balance by 60,000 LTC.
With the current market price of $83, the 60,000 coins recently sold by whales are worth approximately $5 million. Such a large fund outflow within six trading days is an important signal of decline for other strategic investors.
On the other hand, there is also a selling trend among all long-term investor groups. The LTC Age Consumed score increased by 800% from 3.96 million recorded on August 1st to 37.03 million on August 3rd. This data shows that addresses holding LTC for a long time have been moving their assets and largely turning to selling.
So, what will be the price? For now, if the $85 support cannot be regained, it seems likely that the price will drop to the $80 and $72 support levels. The upcoming weekend and the negativity in the BTC front suggest that a significant rise would be a surprise.
