Litecoin is shedding its gains in the market today as the bears take control of its price. At press time, its trading volume is down by over 15%, with a price decrease of 2.80% in the last 24 hours. Such a decline comes after major crypto assets like Bitcoin and Ethereum took a blow and entered bearish territory.
After its decline from $101.85 to $90.44 on April 19, 2023, the bears mounted more pressure pushing its price down to $81.11.
What Next For Litecoin?
LTC is in a downtrend today, forming a bearish engulfing pattern on the daily charts as it descends to lower lows.
It has dropped below its 50-day Simple Moving Average (SMA) and is trading below its 200-day SMA, with bearish sentiment in the short and long term.
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Also, its Relative Strength Index (RSI) is at 34.74 and rapidly descending to the oversold region of 30. It implies that the bears are in control as more traders take short positions in the market. And the decreased trading activity is aiding the current price drop.
LTC’s Moving Average Convergence/Divergence (MACD) is below its signal line and displays a negative value. This is a bearish sentiment for the asset.
LTC Support And Resistance Levels
LTC has dropped below $83.30, leading to speculations of further price decline. The bears at the $88.26 resistance level have resisted a potential break to the upside for the asset. Other critical resistance levels are $90.99, approximately the psychological resistance of $100, and $100.20.
LTC will likely rest on the $80.87 support in the coming days and might decline further to the next support of $78.85. The indicators are all bearish and point to a decline. However, LTC can rally again if the $80.87 support becomes a price pivot for an uptrend.
Litecoin Halving Boost Hope For A Future Rally In 2023
Litecoin is a cryptocurrency from the original Bitcoin protocol. Litecoin halving is similar to that of Bitcoin which is an event where miners’ rewards are reduced significantly as a price control measure to increase scarcity and boost its value.
100 Days till the Litecoin Halving!
— Litecoin (@litecoin) April 24, 2023
Since its creation, LTC has held two halving events in 2015 and 2019. The block rewards were reduced from 50 LTC to 25 LTC in 2015 and 25 LTC to 12.5 LTC in 2019.
The next halving is 86 days away and will decrease the miner’s rewards per block from 12.5 to 6.25 LTC. The projected halving date is August 3, 2023.
Litecoin daily mining rewards stand at 7,200 LTC daily, equivalent to $588,600. Also, its hash rate is 625.39 TH/s which is still profitable for miners.
The halving event occurs every four years, similar to Bitcoin’s, and might trigger a price increase, although this is not guaranteed.
Featured image from Pixabay and chart from Tradingview.com