When will there be LTC growth: Litecoin's forecast after halving
Date: 2023-08-04 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
On August 2, 2023, the third halving took place in the network of one of the oldest cryptocurrencies - Litecoin (LTC). In the first day after the event, the coin fell in price by almost 6%.
A few words about Litecoin halving
Litecoin met its third halving at the same level at which the coin was during the second halving - around $91. Other metrics, including the number of active addresses, daily transaction volume, and hashrate, all increased significantly from last time.
For comparison, between the halving of 2016 and 2020, the leader in capitalization — Bitcoin, according to TradingView, rose in price by almost 1,500%.
Unfortunately for LTC investors, observations suggest that the Litecoin halving is not a bullish signal. After the event, the cryptocurrency usually goes down in price. Including, this happened after the 2019 halving. 7 months after the event, Litecoin fell in price by more than 60%. The cryptocurrency began active growth only against the background of the Bitcoin halving that took place in May 2020. This behavior of LTC can be explained by the fact that BTC remains the locomotive that sets the direction of movement of the entire digital asset market.
The chart also shows that Litecoin was only strong enough for the first wave of Bitcoin growth, which fell on the spring of 2021. In the autumn of the same year, BTC renewed the absolute maximum at the level of $68,789. Litecoin, in turn, kept the peak value recorded in May 2021 — $412. It can be assumed that history will repeat itself.
Despite the fact that Litecoin, like other coins, follows Bitcoin, the level of correlation of LTC with BTC is lower than with many other cryptocurrencies - capitalization leaders. The correlation indicator in the Litecoin/Bitcoin pair, according to macroaxis.com, as of the time of writing this review is 0.58%. For comparison, in the Ethereum/Bitcoin pair, the indicator stopped at the mark of 0.71%. It can be assumed that Litecoin's lower dependence on BTC rate movements is a consequence of the impulses given to the coin by its own halvings.
Given all the above facts, it can be assumed that LTC investors will only see the coin rise against the background of the upcoming Bitcoin halving in 2024. The period before the event, as evidenced by the history of observations, Litecoin risks spending in a fall.
Litecoin Forecast: What Investors Expect from LTC Ahead of Halving
Popular cryptoblogger Nebraskangooner's humorous Litecoin prediction of the coin moving to the $120 level showed that there aren't many people optimistic about LTC in the crypto community. In the comments to it, subscribers openly ridicule investors who believe in the growth of Litecoin against the background of its own halving in 2023.
Many expect Litecoin to fall to levels around $50.
The Inmortal analyst, popular in the crypto community, after analyzing the cyclical behavior of Litecoin, came to the conclusion that the coin risks continuing its movement in the already set price range. He believes that the next LTC halvings may also meet around $90.
Estimated trajectory of Litecoin
However, there are those who believe in the positive effect of halving on the movement of the LTC rate. Many build their positive Litecoin forecast on assumptions about the rapid rise of Bitcoin.
