LTC disappoints as halving countdown draws down to less than 15 days
- LTC falls back to the lower $90s as sell pressure outweighs incoming liquidity.
- Litecoin whales thwart the bulls after the surge in excitement since the start of July.
Litecoin holders that purchased the cryptocurrency recently are disappointed after the latest price outcome. Its bearish performance stood contrary to expectations, especially with the halving drawing closer.
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The overall sentiment regarding the halving is that it should strengthen Litecoin’s demand. As such, many have been buying the cryptocurrency, expecting a strong rally. Instead, LTC has been on a downward trajectory since the start of July. For perspective, its $90.91 press time price represented a 20% dip from its four-week high.
Litecoin’s bearish outcome commenced after it dipped into the overbought territory at the start of July. The price, at press time, was in the Relative Strength Index (RSI)’s mid-range which means there might be some directional uncertainty. On the other hand, the Money Flow Index (MFI) hovered right above the overbought zone at the time of writing.
The latest downside appears to have been curtailed after the price interacted with the 200-day moving average indicator. These observations may point to a potential pivot point. However, such an outcome may be determined by the same factors that have contributed to its bearish outcome.
Are whales contributing to sell pressure?
Whales have the largest impact on price action. Indeed, a look at Litecoin’s on-chain metrics offers some confirmation. It turns out that some whales have been taking profits and contributing to selling pressure. According to the supply distribution metric, addresses holding over 1 million LTC have been heavily offloading their holdings.
Although the highest whale category has been selling, the next largest category (holding between 100,000 and 1 million LTC) has been buying the dip (denoted in yellow). Note that the same whales accumulating represent the category with the highest amount of circulating supply.
Will the bulls make a comeback this week?
Well, the good news is that there are some whales that are scooping up more LTC. The bad news is that other whales are selling. We will likely not see another bullish move unless there is more buying pressure than sell pressure.
LTC’s performance so far this month confirms that the momentum leaned in favor of the sellers. But why is this the case despite the upcoming halving? Well, sometimes large players tend to take advantage of trends. Whales selling when others are buying gain access to exit liquidity. Potentially even executing short positions to take advantage of the subsequent sell pressure.
How many are 1,10,100 LTCs worth today
Despite the selling pressure, the market is still excited about the halving. That excitement may manifest in the long term regardless of the short-term bearish outcome.
It ridiculous to have targets for Bitcoin at $625k to $1.5M but completely overlook litecoin. Litecoin's network growth is now growing faster than Bitcoin. It's price is measurably undervalued. This cycle will be all about Litecoin. pic.twitter.com/TlAVxR7oEq
— Shan Belew Ⓜ️? (@MASTERBTCLTC) July 18, 2023