Litecoin (LTC) price has gained 13% after a rough start to the first week of May. An in-depth on-chain analysis provides insight into the likely movement of LTC price ahead of the upcoming halving event. What are the chances that LTC will reclaim the $120 price forecast in the coming weeks?
The upcoming Litecoin (LTC) halving, scheduled for August 2023, is one of the most anticipated events in the blockchain space this year. New price peaks followed each of the last two LTC halvings.
But with whale selling and miners reducing their reserves, how will Litecoin price react in the coming weeks?
Litecoin miners selling
In the upcoming halving event, the block rewards issued to Litecoin miners for validating transactions will be cut in half, from 12.5 LTC to 6.25 LTC. Usually, when the halving date approaches, crypto miners want to stock up on their reserves.
But interestingly, this has not happened on the Litecoin network. With the next halving less than 70 days away, on-chain data shows that LTC miners are still reducing their reserves.
According to the chart below, Litecoin miners have unloaded around 680,000 coins from their reserves in May 2023.
As seen above, miners are taking advantage of the current high prices to book some profits. Similarly, rising global energy prices and a crackdown on crypto mining activity by regulators have also caused mining costs to skyrocket in recent months.
If these factors don’t pan out, LTC miners are likely to continue selling in the build-up.
Ultimately, this could slow down a potential Litecoin rally in the coming weeks, despite the bullish momentum from other investors.
Whales have entered another profit-taking cycle
Litecoin has outperformed Bitcoin and Ethereum over the past 3 weeks. And the rapid trading activity of crypto whales holding balances of 10,000 to 100,000 LTC has been a key factor.
However, the whales have entered a profit-taking cycle this week. Between May 23 and May 26, he offloaded 110,000 LTC.
At the current market price of $87, the 110,000 tokens sold are worth $9.5 million. In particular, the historical trading activity of this whaling herd has been closely related to value.
This suggests that if they continue to sell, they could signal another LTC price correction.
LTC Price Prediction: Bears May Target $80
Given the bearish activity among Litecoin miners and whale investors, LTC could decline further below $80 in the coming days.
intoblock Global In/Out of the Money (GIOM) The data shows that LTC will face relatively strong resistance at $90 compared to the next support cluster currently at $85.
As seen below, LTC will see initial support from 346,000 investors who bought 1.62 million LTC at an average price of $85.
However, if the bearish momentum sustains as expected, the price could witness a further decline towards $78.
On the other hand, the bulls could invalidate the bearish Litecoin price forecast if there is a break above the crucial $90 resistance.
But a potential selling wall of 623,000 investors, who bought 5.97 million LTC at an average price of $90, will likely prevent this.
Although unlikely, if that resistance level is breached, LTC could move higher towards $120.
disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your research and seek professional advice before making any financial decisions.