The Litecoin (LTC) community is buzzing with excitement as the much-anticipated third halving event is set to take place today. This event will see the miners’ block reward reduced from 12.5 units to 6.25 coins, marking a significant reduction in Litecoin inflation.
However, despite the hype and increased daily traded volume, which has hovered around $1.1 billion according to Coingecko, the price of LTC has failed to reflect the anticipated bullish sentiment. Currently, LTC is trading around $90.61, down 18 percent in the past 30 days.
Insights from Santiment on Litecoin Halving Effects
Market intelligence platform, Santiment, has reported that Litecoin’s social dominance has seen a significant increase in the past few hours leading up to the halving event. However, Santiment has issued a word of caution, warning of a possible price drop as traders’ panic increases.
The platform argues that a ‘buy the rumor, sell the news scenario might be at play, with traders lacking patience over price consolidation. Interestingly, Santiment has also observed that Litecoin traders have been moving their holdings at a loss, indicating bearish sentiments.
Skeptical Price Analysis
Litecoin’s price has been consolidating between $90 and $95 in the past few weeks, despite the highly anticipated halving event. According to the analysis of a bullish digital asset analyst, Crypto Tony, LTC’s liquidity has remained relatively low despite its high demand and adoption. As a result, the analyst predicts that Litecoin’s price will continue to build a support base before gaining any significant bullish momentum.
Conclusion
The Litecoin community’s excitement over the third halving event has failed to translate into the expected price surge. While the daily traded volume has surged, the price of LTC has experienced a decline in the past month. Santiment warns of potential further price drops due to traders’ impatience, while Crypto Tony believes that LTC needs to establish stronger support levels before a bullish trend can be expected.
As the Litecoin ecosystem adjusts to the halving’s impact on mining rewards, only time will tell whether the price will rally as enthusiasts hope, or if further consolidation is in store for the popular cryptocurrency.
Source: https://coinpedia.org/price-analysis/litecoin-ltc-halving-event-community-anticipation-fails-to-boost-ltc-price/