Litecoin (LTC) Price at Risk – Are Miners Selling Off After Halving?

2023-8-8 20:00

The Litecoin price has failed to rebound since the 12% retracement triggered by the latest Halving event on Aug 2. Facing the risk of costs outpacing the value of their block rewards, Litecoin miners have started depleting their reserves by millions of dollars. Is the LTC price at risk of a larger price drop? 

Litecoin’s much-heralded halving event on Aug.2 has resulted in a 15% price correction from $94 toward the $80 territory. On-chain data examines how the ongoing sell-off among Litecoin miners could put LTC price at risk.  

Litecoin Miners Have Offloaded $5 Million in the Last 5 Days 

The completion of the Aug. 2 Halving event means the block rewards issued to miners were effectively slashed from 12.5 LTC to 6.25 LTC. Amid rising costs to run mining operations, Litecoin miners have already started to deplete their reserves rather than hold long term.

On-chain data from IntoTheBlock shows that LTC Miners have offloaded 60,000 coins from their reserves within the last 5 days. As shown below, the miners held a cumulative reserve balance of 2.48 million LTC on Aug 3. But by the close of Aug 6, it had dropped to 2.42 million LTC. 

Litecoin (LTC) Price at Risk | Miners Reserves, Aug. 2023. Source: IntoTheBlock

Miner Reserves assesses the trading activity of miners by tracking the cumulative balances in wallet addresses linked to recognized miners and mining pools.  A decline in miners’ reserves is a bearish signal indicating that miners are actively selling off their block rewards.

As seen above, the LTC miners have rapidly depleted 2.5% of their total holdings within just 5 days of the just-concluded halving event. 

Empower your investments with price predictions here

Notably, the value rewards issued per block(s) mined have now been halved to 6.25 LTC. This means that many LTC miners may now be forced to continue selling in order to keep up with rising overhead mining costs. 

If Litecoin cannot deliver substantial gains in the coming weeks, the LTC price is at risk of falling into a vicious downward spiral.

On-chain Data Suggests More Litecoin Sales Ahead 

Despite the recent price drop, on-chain data suggests there’s still room for many Litecoin holders to sell at a healthy profit in the coming weeks. 

As seen below, Litecoin MVRV ratio shows that most investors that bought LTC in the last 30 days still hold unrealized profits of about 7%. 

Litecoin (LTC) Price at Risk | MRVR Ratio, Aug. 2023. Source:Santiment

The Market Value to Realization Ratio (MVRV) shows the recent investor’s net financial positions. 

With current holders sitting on 7% profits, it means that they have sufficient wiggle room to sell more of their holdings until LTC price approaches their break-even range of around $77. 

In conclusion, Litecoin runs the risk of retracing to the strategic holders and could mirror the miners’ bearish trades until Litecoin price declines by another 7%. 

Read More: Best Upcoming Airdrops in 2023

LTC Price Prediction: Possible Retracement Toward $77

Considering the on-chain factors dissected above, LTC price is at risk of dropping below $75 in the coming weeks. 

However, the GIOM data shows that Litecoin bulls will offer initial support around the $78 range. At that zone, 926,000 addressed had bought 4.96 million LTC at the average price of $77. 

But if the bearish Litecoin miners can overturn that buy-wall, LTC could drop toward $75 as predicted. 

Litecoin (LTC) Price Prediction | GIOM data, Aug. 2023. Source: IntoTheBlock

Conversely, the bulls could regain control if LTC can rebound above $90. However, there’s a risk of a possible reversal around the $85 range. At that territory, 371,000 investors had bought 2.62 million coins at the maximum price of $85. If they book profits, they could trigger another bearish reversal. 

Still, if Litecoin can move past that resistance, the $100 mark could be the next target.

Read More: 9 Best AI Crypto Trading Bots to Maximize Your Profits

The post Litecoin (LTC) Price at Risk – Are Miners Selling Off After Halving? appeared first on BeInCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Miners' Reward Token (MRT) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0062782 (-100%)

miners litecoin risk halving price ltc off

miners litecoin → Результатов: 83


Pricing In The Bitcoin Halving: How Miners Are The Key To Major Upswings

The second Litecoin halving will take place on August 6th, and the next Bitcoin halving is in less than a year. We have already performed analysis on the historic price behavior during halvings: but how do miners factor into the market price? Miners invest in specialized equipment to mine the coins, and just like any […] The post Pricing In The Bitcoin Halving: How Miners Are The Key To Major Upswings appeared first on Crypto Briefing.

2019-6-16 18:44


Litecoin (LTC) Leapfrogs Bitcoin Cash To Become The Fourth Largest Cryptocurrency After 12% Surge

Litecoin Becomes The 4th Largest Cryptocurrency Surpassing Bitcoin Cash After 12% Surge Litecoin Surges Before Halving Event One of the apparent reasons for this price surge is related to the fact that the digital currency is going to be halving as soon as in August. Rewards for miners are going to be dropping from 25 […]

2019-6-7 21:59


Фото:

Litecoin Price Analysis: How High Will Halving Hype Push LTC?

In approximately 179 days, Litecoin (LTC) will undergo a block-reward halving — cutting the coin reward for miners from 25 to 12. 5 coins. With fundamental developments like confidential transactions reportedly in the works and the popular altcoin experiencing price-strength confirmation, how high will the impending halving hype push the price of the peer-to-peer cryptocurrency?  [Disclaimer: The following article is not financial advice and should not be construed as such.

2019-2-10 08:00