2023-7-27 02:00 |
Litecoin has been one of investors’ favorites over the last couple of months due to its consistent uptrend coming out of the month of June. However, recent data suggests that the interest in the digital asset may be waning even as its halving event draws closer than ever, a development that could deeply impact the altcoin’s ability to recover.
Litecoin Daily Trading Volume Falls By 28%Litecoin’s volume was on the rise especially with its price surging above the $100 level just a few weeks ago. But with the drawdown that the altcoin has seen during this time, its trading volume has also nosedived with significant daily declines.
In the early hours of Wednesday, data from Coinmarketcap shows that the Litecoin trading volume had fallen by 28% compared to its previous day’s volumes. Like with any digital asset, a decline in daily trading volume implies that investors could be moving away from the asset, especially after securing profits from its mini-bull rally.
This decline also coincides with the altcoin’s price action that has put it in a mostly bear trend. Although LTC traded as high as $90 on Tuesday, the bears pulled it back down to $88 before the day was over. This low momentum spilled on to Wednesday, where LTC is still trading below the $90 support despite a slight recovery.
Can LTC Recover From Here?One bull case for Litecoin’s native LTC token is the upcoming halving event. This event which happens roughly once every four years will see the block rewards for miners being cut in half once again. This will also cut the rate at which new coins are being brought into speculation, effectively throttling the inflation rate of the cryptocurrency.
Given this, halving events are always bullish for coins that carry this mechanism with investors clamoring to get their hands on more tokens as the rate of issuance falls. However, it can also quickly turn bearish if the price of the asset rises quickly and investors start cashing out profits.
With the Litecoin halving now only a week away and the LTC price still sitting in the red, it is possible that this event is already priced in. In such a case, it would mean that there would be no massive rally as investors expect with the halving event in view. So it is possible that LTC continues to trade below $100 even following the halving.
At the time of this writing, LTC’s price is currently sitting at $89.36, down 0.03% in the last 24 hours and 3.97% in the last seven days.
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