Analyst: Litecoin price will fall before halving

Litecoin attempted a bullish breakout above key resistance at $115 but failed, with the asset trading below $100 at the time of writing.

Over the past two weeks, the dynamics of Litecoin inspired traders with optimism, but the situation changed dramatically over the weekend. The weekly candle closed below the all-important $100 level, which has repeatedly acted as both support and resistance, and coincided with the 200-day moving average (MA), which signals a change in market sentiment regarding LTC.

Analysts give a bearish forecast for Litecoin

Despite the fact that on Monday the LTC market opened at $93.2, the volume of trading remained quite high – about $600 million, which exceeds the performance of most altcoins. The long-term potential of Litecoin is underpinned by a large user base of over 9.5 million people and a high hash rate of around 778.84 TH/sec.

However, the well-known cryptanalyst @CryptoKaleo, which has over 593,000 followers on Twitter, made a number of compelling arguments in favor of shorting Litecoin. He noted that the asset failed to break through the long-term descending resistance line, indicating increased selling pressure.

@CryptoKaleo also reminded that LTC usually reached a local peak 2-3 weeks before the halving, and drew attention to the fact that the price of the token has been steadily declining compared to Bitcoin (BTC).

3 weeks left before LTC halving

Litecoin halving occurs every 840,000 blocks, so the next “halving” will be on block number 2,520,000, which will be mined on August 2. After the halving, the reward for miners per mined block will be reduced from 12.5 LTC to 6.25 LTC.

There is a lot of speculation about the possible impact of halving on the price of the asset, however, @CryptoKaleo believes that history will repeat itself this time, and Litecoin will not see an explosive growth, but a large-scale correction.

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