Reasons for the fall of Litecoin after halving. Before reaching the halving event, according to the market conditions and the sentiments about the halving among the consumers of this cryptocurrency, Litecoin advanced to the price of $115 in August, but after the halving event, it fell. The reasons that caused the fall We will check the rate of this cryptocurrency in this article.
The halving of Litecoin, which took place on August 2, 2023, raised expectations for an increase in the price of Litecoin LTC. A few weeks before the halving, the price of Litecoin reached $115 for the first time in more than a year. But this increase in price was not continuous and the price of this currency decreased to 92 dollars on the day of halving and to less than 70 dollars in the following days.
It seems that the price drop during the month of August has not convinced the Litecoin whales about the short-term future of this currency. Because on-chain data shows that Litecoin whales have sold massively during this month. In addition, the situation in the Litecoin futures market does not look promising. Considering all these conditions, there may be a risk of the price falling to $60 in Litecoin.
One of the important reasons that reduced the price of Litecoin was the indiscriminate sale of whales. Based on sentiment data, whales whose Litecoin balance is from ten thousand to one million Litecoin entered the market in August. The data shows that this whale Before August, they had 47.12 units of Litecoin in their wallets, which changed to 46.7 at the end of the month. In addition to the negative signs in the situation in China and the spot market, the recent situation of Litecoin in the derivatives market also seems to be bearish. According to Coinglass, a cryptocurrency derivatives market analysis platform, the number of open Litecoin futures contracts has reached its lowest level since November 2022, when the collapse of the FTX exchange caused severe turbulence in the cryptocurrency market. As shown in the image below, the number of open Litecoin futures contracts, which was 543 million dollars at the beginning of August, has decreased by 56% to 238 million dollars at the end of the month. The current price of this cryptocurrency is currently in the range of It is traded at $63, and if Litecoin relies on the same price trend, its price may drop below $60 and be supported in the $50 range.
