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Litecoin (LTC) Post-halving Scenario: What to Expect

Tue, 08/08/2023 - 10:50
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Arman Shirinyan
Post-halving, Litecoin takes unexpected dip, with short-term holders steering ship
Litecoin (LTC) Post-halving Scenario: What to Expect
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Halving events are significant milestones that garner substantial attention. They reduce the reward for mining new blocks, making the cryptocurrency scarcer and, in theory, more valuable.

Litecoin's recent halving was no exception. However, contrary to general expectations of a surge, Litecoin's price saw a considerable decline after the event. This "sell the news" phenomenon, where traders offload their assets after anticipated news is realized, was anticipated by many seasoned investors.

A closer examination of the trading behavior surrounding the halving paints an interesting picture. The chart illustrating the average holding time of transacted coins provides insights into the market's sentiment. A notable spike was observed during the price ascent, suggesting that long-term holders, perhaps sensing the impending peak, were actively selling off their coins, capitalizing on the rally.

However, the subsequent downturn seemed to have a different set of players at its forefront. Unlike the previous trend dominated by long-term holders, the post-halving price dip was primarily steered by short-term holders. The current average holding time has dwindled to approximately a month. It becomes evident that these short-term holders, possibly sensing a sinking ship, are hurriedly selling off their assets in a bid to minimize losses.

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Drawing parallels from other renowned cryptocurrencies like Bitcoin, post-halving market data often reveals a mixed bag of reactions. Bitcoin, after its halvings, has historically shown a trend of bullish momentum, albeit after an initial period of consolidation or minor correction. If Litecoin were to follow this trajectory, the present dip might be a temporary phase before a more substantial rally.

While the post-halving scenario for Litecoin currently paints a bleak picture, it is essential to remember the ever-dynamic nature of the crypto realm. Drawing from Bitcoin's post-halving history, there may still be hope for Litecoin enthusiasts.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.