Bitrabo Editorial
The price of Litecoin (LTC) experienced a 13% surge after a difficult start in the first week of May. An in-depth on-chain analysis provides insight into the potential LTC price swings ahead of the upcoming halving event. The question remains, will LTC be able to reclaim its $120 price prediction in the coming weeks?
The Litecoin (LTC) halving, which is slated for August 2023, is one of the most anticipated events in the blockchain space this year. New price peaks have followed each of the last two LTC halvings.
However, with whales selling and miners depleting their reserves, the question is how Litecoin’s price will respond in the coming weeks.
Litecoin Miners Are Selling
The upcoming halving event will see block rewards issued to Litecoin miners for validating transactions slashed in half, from 12.5 LTC to 6.25 LTC. Usually, when a halving date approaches, crypto miners look to stock up on their reserves.
Interestingly, that has not happened on the Litecoin network. With less than 70 days left until the next halving, on-chain data shows that LTC miners are still depleting their reserves.
According to on-chain data, Litecoin miners have sold nearly 680,000 coins from their reserves in May 2023. They are taking advantage of the current high prices to book some profits. Additionally, rising global energy prices and a crackdown on crypto mining activity by regulators have also made mining costs skyrocket in recent months.
If these factors do not subside, LTC miners are likely to continue selling, which could slow down a potential Litecoin rally in the coming weeks, despite bullish momentum from other investors.
Whales Have Entered Another Profit-Taking Cycle
Litecoin has outperformed Bitcoin and Ethereum in the last three weeks. However, the bullish trading activity of the crypto whales holding balances of 10,000 to 100,000 LTC has been a significant factor.
The whales seem to have entered a profit-taking cycle this week, offloading 110,000 LTC from May 23 to May 26. The traded tokens are worth $9.5 million at the current market price of $87. The historical trading activity of this whale cohort has been closely correlated to Litecoin’s price, suggesting that if they continue selling, they could prompt another LTC price correction.
LTC Price Prediction: The Bears Could Target $80
Considering the bearish activity among Litecoin miners and whale investors, LTC might drop below $80 in the coming days, according to predictions from IntoTheBlock’s Global In/Out of The Money (GIOM) data. It suggests that LTC will currently face a relatively stronger resistance at $90 compared to the next support cluster at $85. The bears could target $78 if the bearish momentum prevails as expected.
The bulls could invalidate the bearish Litecoin price prediction if it breaks above the critical $90 resistance level. Still, a potential sell wall from the investors who purchased 5.97 million LTC at an average price of $90, will likely prevent that. However, if that resistance level is breached, a rally towards $120 is possible but unlikely.
Disclaimer
This price analysis article is for informational purposes only and should not be considered financial or investment advice. Bitrabo is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your research and seek professional advice before making any financial decisions.