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Halving events for cryptocurrencies are commonly referred to as catalysts that typically spark bull movements due to the fundamental strength they contribute to individual cryptocurrencies. Litecoin (LTC) is currently under two days away from its halving event, which has been widely viewed as a bullish event.
Despite this, analysts are noting that Litecoin investors may be gravely disappointed by the crypto’s price action in the coming days and weeks, as it has previously faced significant selling pressure following its halving event.
Litecoin Drops as Halving Hype Fades
At the time of writing, Litecoin is trading down just under 1% at its current price of $95.20 and is down slightly from daily highs of over $97.
While zooming out and looking at Litecoin’s price action over a longer time frame, it is clear that the cryptocurrency is not being bolstered by the imminent halving, as it is currently down from its late-June highs of over $140.
Josh Rager, a popular crypto analyst, recently explained that he believes Litecoin’s price action looks significantly less bullish than other cryptocurrencies, including Chainlink.
“Comparing $LTC and $LINK for someone & thought I’d share. There are huge fans of both but right now $LINK is clearly the asset to be in even with the LTC halving upon us. LTC has been in a clear downtrend & unable to hold its own again BTC while LINK has responded well at support,” he noted.
https://twitter.com/Josh_Rager/status/1157514989122543621
Halving May Result in Multi-Month LTC Downtrend
Another possibility that could scare LTC investors who are banking on a post-halving price surge is that it will actually result in a medium-term downtrend.
Tadleer, another popular crypto analyst on Twitter, mused this possibility in a tweet, pointing to a chart that shows that during the last halving, Litecoin surged before the event before facing a post-event sell-off.
“$ltc halvening is coming up, will history repeat itself?” He explained while referencing the below chart.
$ltc halvening is coming up, will history repeat itself? #litecoin #Crypto pic.twitter.com/JYUxmsgVca
— tad (@tadleer) August 1, 2019
As the halving draws closer, it is highly probable that analysts and investors alike will soon discover whether or not the event will truly be a bullish catalyst, or if the hype will fade and leave a trail of bag holders in its wake.
Featured image from Shutterstock.
