Last week, Litecoin (LTC) slid to a 2023 bottom of $56, culminating in a third consecutive post-halving crash. Can Grayscale’s landmark victory propel Litecoin price toward reclaiming the post-halving losses?
On Tuesday, August 29, Litecoin (LTC) price briefly hit $70, its highest since dropping to the 2023 bottom of $56 on August 18. The ongoing price rally came as crypto markets reacted to Grayscale’s landmark victory in its Bitcoin ETF application appeal against the US Securities and Exchange Commission (SEC).
Low Prices Make Litecoin Network More Attractive For P2P Transactions
While other large-cap coins like Bitcoin Cash (BCH) and Toncoin (TON) raced to double-digit percentage gains, Litecoin only mustered a 4% bounce. What are the chances that the Litecoin price will reclaim $100 in the coming weeks?
Litecoin became prominent for its pedigree as a cheaper and faster alternative to Bitcoin for peer-to-peer transactions. The recent price correction appears to have brought this to the fore.
As the August 2 Halving event approached, LTC price fell under $100 in mid-July. Since then, crypto investors have been deploying more transactions on the Litecoin network.
The Santiment chart below vividly depicts how daily LTC Transaction Volumes have gradually increased over the past month. Since July 25, it has increased by 41% from 10.34 million LTC to 14.6 million LTC transacted on August 29.
The Transaction Volume sums up the total volume of transactions involving LTC on a given day. Typically, this means higher demand for LTC as more services rendered by or hosted on the network are being utilized.
With this healthy growth in transactional activity, it is unsurprising that LTC has managed to claw back some of its post-halving losses. However, another key indicator shows that Litecoin’s price is still far from a major price breakout.
The Prevailing Sentiment Across the Litecoin Network is Still Largely Bearish
The ripple effect from Grayscale’s landmark victory has done little to sway the Litecoin bears. According to the Exchange on-chain market depth chart, the bears have placed active orders to sell off 277,340 LTC around the current prices. This outweighs the current volume of purchase orders totaling 264,760 LTC.
The Exchange On-chain Market Depth chart shows the volume of active orders for Litecoin placed across recognized cryptocurrency exchanges. As depicted above, the market supply for LTC has now outpaced demand by more than 12,500 coins.
This suggests that despite the growth in transactional activity, the ongoing crypto market rally may have a disproportionately smaller impact on Litecoin price.
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LTC Price Prediction: The $80 Resistance May Prove Daunting
Considering LTC traders’ bearish sentiment, Litecoin price will likely continue to lurk below $80 in the coming weeks.
The Global In/Out of Money Around Price (GIOM) data, which depicts the purchase price distribution of the current Litecoin holders, also supports this prediction.
It underlines that 1.25 million addresses had bought 8.84 million LTC coins around the average price of $78. Unless Litecoin can generate greater demand to outpace supply, that $80 resistance could prove daunting, as predicted.
Furthermore, an additional 1.66 million addresses hold an additional 14.81 million LTC at an average price of $88. This culminates into a huge resistance zone if Litecoin could push to those prices.
Although unlikely, if the bulls can scale that resistance, Litecoin’s price could hit $90 for the first time since the last Halving event.
Conversely, if the bearish market sentiment grows, the bears could force a downswing below $60. However, 401,000 wallet addresses had bought 5.14 million LTC coins at an average price of $65. If they HODL, Litecoin price could enter a rebound.
But if that support level caves, LTC price could eventually hit a new 2023 bottom of $50 – a key level that sees over 11.34 million LTC bought at a max price of $50.
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