Litecoin attempted a bullish breakthrough above the key resistance at $115, but was unsuccessful: at the time of writing, the asset is trading below $100.
Over the past two weeks, the Litecoin's dynamics have been promising for traders, however, the situation changed abruptly over the weekend. The weekly candle closed below the crucial level of $100, which has acted as both support and resistance multiple times, and coincided with the 200-day moving average (MA), signaling a shift in market sentiment towards LTC.
Analysts bearish on Litecoin
Despite opening at $93.2 on Monday, the trading volume for LTC remained relatively high at around $600 million, surpassing the figures of most altcoins. Litecoin's long-term potential is supported by its extensive user base of over 9.5 million people and its high hash rate of approximately 778.84 terahashes per second.
However, well-known crypto analyst @CryptoKaleo, followed by more than 593,000 users on Twitter, has provided compelling arguments in favor of short positions on Litecoin. He highlighted that the asset failed to break through a long-term descending resistance line, indicating an increasing selling pressure.
@CryptoKaleo also pointed out that LTC has historically reached a local peak about 2-3 weeks before halving events and highlighted the steady decline in the token's price compared to Bitcoin (BTC).
There are 3 weeks left until the LTC halving event.
The halving of Litecoin occurs every 840,000 blocks, so the next halving will happen at block number 2,520,000, which is expected to be mined on August 2nd. After the halving, miners' rewards for each mined block will be reduced from 12.5 LTC to 6.25 LTC.
There have been numerous speculations about the potential impact of the halving on the asset's price, but @CryptoKaleo believes that history will repeat itself and Litecoin can expect a significant correction rather than explosive growth this time.