Key Takeaways:
- Litecoin’s (LTC) price drops, but investors’ interest remains.
- Whales buy up the coin ahead of the halving.
- Will the price rise further?
YEREVAN (CoinChapter.com) – Litecoin token LTC traded at $89 on July 25 after undergoing a 5% daily decline. However, according to on-chain data tracker Santiment, heightened investor interest in the veteran altcoin persisted.
The platform commented that Litecoin interest was the highest in weeks and the trading volume, with less than 10 days before the halving.
As earlier reported, whales are partially responsible for the surge in trading volumes, intensively adding to their holdings. According to Santiment, addresses holding between 100,000 and 1 million LTC now hold over 35% of the supply, pumping their purses by $59 million.
Meanwhile, as the chart above testifies, the whales have been actively accumulating since early July due to price depreciation and the drawing halving event.
Moreover, in a Jul 5 tweet, Santiment asserted that Litecoin saw a 6% whale address number increase “in the previous five months.”
Will the halving raise the LTC price?
As per the Litecoin calendar, the halving event will occur on Aug 2 at 1725 GMT, a week from the time of writing. Taking place on block 2,140,000, the reward for mining Litecoin will drop from 12.5 LTC to 6.25 LTC. Reduced supply and increased demand would make logical sense, based on history.
In detail, Litecoin has a halving event every four years, just like Bitcoin. During a halving, the amount of Litecoin created each time a block is mined is cut in half. It essentially strengthens the incentive to mine as much as possible just prior to the halving.
Additionally, the halving puts more value on each existing LTC coin, as investors are aware of the slower production of each coin moving forward.
As of July 25, the Litecoin token price dropped to $89, hitting a support level. If the bulls persist, increasing buying pressure, the price will not drop below the said level in the coming week. Instead, it could pump to the next available support level at $94, or 5.4% higher than the current value.
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