- During the halving, miners will now receive a block reward of 12.5 LTC per block, instead of 25.
- As per data from GitHub, the developer activity in Litecoin has been at its lower level since 2014.
The Litecoin community is hyped up about the halving event, hoping for it to be a catalyst which will take the cryptocurrency back to its all-time high. Recently, the price of LTC/USD has floundered alarmingly. July has been particularly bearish, following six straight bullish months. During July, LTC/USD fell from $122.50 to $98.80, dropping by 19.3%.
As a result of the halving, miners will now receive a block reward of 12.5 LTC per block, instead of 25. The previous halving coincided with a huge boost in its price. Many in the community feel that the latest halving will have the same effect. As Eric Turner, director of research at Messari, puts it:
“In the bear market, a lot of traders saw the Litecoin halving as a good fundamental trade and it became pretty crowded. Now that the halving is here, some investors are starting to exit the trade. Halvings tend to be priced in, so the event itself isn’t the positive catalyst that many expect.”
Litecoin is currently suffering from a lot of fundamental issues as well. As per data from GitHub, the developer activity in the cryptocurrency has been at its lower level since 2014. David Tawil, president of crypto hedge fund ProChain Capital, observed:
“Folks that are invested in Litecoin see these technical moves as not being important enough anymore — there needs to be more fundamental development. These technical activities, although they make sense from a supply-demand perspective in terms of amount outstanding and so forth, at the end of the day, that story-line only works for so long.”
Will the halving be the magic pill which can fix all the issues that Litecoin is currently facing? Probably not, but it will definitely lead to some interesting price action.
LTC/USD daily chart
Following the halving, LTC/USD went up to $107, before the bears stepped in and took the price down to $98. Since then, the bulls buoyed the price back up to $100 before the bears counterpunched and ended the day at $96.75. The bears continued their domination in the early hours of Tuesday and bought the price down to $94. The 20-day simple moving average (SMA 20) acts as immediate market resistance.