Prominent crypto intelligence portal Santiment has reported a surge in interest in Litecoin (LTC) as the highly anticipated Aug. 2 halving approaches. With less than 10 days left until the halving event, LTC's trading volume has seen a staggering 48.5% increase in less than 24 hours, soaring from $377 million to an impressive $560 million.
Interestingly, amid this remarkable growth in trading volume, the decline in the price of LTC seems to have come to a halt, despite having experienced a more than 20% drop since the beginning of June.
On closer inspection of smaller time frame charts, analysts have identified potential signs of a local bottom forming, indicating a potential shift in market sentiment.
Despite the surge in trading volume, prominent crypto analysts hold varying opinions about the future trajectory of LTC's price.
Fun on hold
One such analyst, Benjamin Cowen, pointed to a historical pattern associated with Litecoin's halving events. He revealed that during previous halving years, the price of LTC has tended to fall during the June-July period. Interestingly, Cowen's tweet highlighting this pattern seemed to align with the start of LTC's recent decline.
In addition to Cowen's analysis, analyst Ali Martinez uncovered another data-driven pattern indirectly linked to the halving. Martinez observed that every time the number of new LTC addresses surpassed 350,000 over the past five years, a substantial price correction followed. Recently, the creation of more than 690,000 LTC addresses has taken place, indicating a potential "sell the news" type of event around the upcoming halving.
In conclusion, Litecoin's recent surge in trading volume has generated excitement among crypto enthusiasts, but experts remain cautious, predicting the possibility of a price drop.