Litecoin’s price dynamics have been indicating a strong downtrend since the past month. After reaching an all-time high in June 2019 at $146, the cryptocurrency has faced serious selling pressure. At the time of writing, Litecoin is trading at $72.30, showing a decline of almost 50% in 2 consecutive months. The halving was considered bullish for Litecoin but it failed to push the coin to new highs.
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Litecoin’s trend was expected to reverse at the end of July, however, the price has been dropping since the first week of August. The Litecoin halving turned out to be a fundamental issue affecting the asset’s price. A hash rate decline followed the halving that took place on August 5. Since block 1680000, miners have been receiving 12.5 LTC instead of 25 for each new block.
Though the price didn’t rally upwards as expected this time, two months before the first halving LTC gained 440% and traded at $8.59 instead of $1.60. The positive growth forecasts of the past two months turned out to be premature and this halving went by without much price action.
Since the halving, mining difficulty reduced by over 30% and network complexity decreased by 28%. The obvious explanation for the price action is that mining became unprofitable as rewards didn’t cover mining costs.
Litecoin may be dying a slow death. Litecoin Foundation is considering the launch of a crowdfunding platform to develop the product further. Also, its employees have proposed reducing their salaries to help the organization withstand a period of lower donations in the first quarter of 2019. This points to the subsequent downfall of Litecoin in market capitalization, however, among crypto experts Litecoin price predictions differ significantly.
Averaging shows that Litecoin is about to become bullish as the price action indicates an upcoming trend reversal. LTC price may test the upper limit at the level of $85. To make this possible, the trading volume would need to be high enough to maintain momentum. This can happen if the Bitcoin price lingers around $10K until the end of September 2019. However, there is no sign of a bullish sentiment over the coming two weeks. Litecoin may locate a sideways trend in the first week of September and then test critical support at $70. The resistance will continue to remain at $80.
While there is a difference in opinion on Litecoin prices, halving did not meet the expectations of the crypto community. However, September 2019 is 4 weeks away and that gives Litecoin holders hope for the price to go back to $80 and above.
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