Litecoin Halving Hype Can’t Break Downtrend, But Breakout Would Be a Buy Signal
Litecoin’s halving is just three days away – an event hard-coded into the Litecoin protocol, aimed at reducing the block reward miners receive, which therefore reduces the supply of LTC and can have the effect of throwing off the delicate balance with demand.
This typically results in a pre-halving “pump” which did appear to be occurring at the start of 2019. But unfortunately, Litecoin has been locked in a downtrend that still looks to be intact according to one analyst, and until it’s broken, the pre-halving rally may be effectively done for. However, a breakout here could be a strong buy signal for Litecoin.
Lack of Litecoin Pre-Halving Pump Keeps Crypto Asset in Downtrend
The silver to Bitcoin as digital gold, Litecoin is among the first-ever cryptocurrencies, and its longevity has earned it a top spot in the crypto market top ten throughout much of its existence.
The crypto asset often leads rallies and can be an indicator of overall market sentiment. It was altcoin that helped the rest of the market find a bottom in December 2018, and outperformed Bitcoin throughout 2019, bringing investors 600% returns at its peak before it fell to the current price range.
Related Reading | Litecoin Leads The Way: As Bitcoin Plummets, Altcoins Rise Across the Board
Altcoins like Litecoin have been bouncing strongly after a major capitulation event a couple of weeks ago. But once Bitcoin’s rally slowed, the alt market came alive once again, with Litecoin as usual leading the charge.
Despite rallying from a low around $70 to the current high near $100, Litecoin still has yet to break out of the downtrend its been in since June’s local high of $140, according to one prominent crypto analyst.
Not trying to be a Debbie downer but don’t get too bullish on LTC just yet.
Downtrend still intact.
However, a breakout with a retest would be a high probability buy-in opportunity. pic.twitter.com/qMZnOxIKFj
— NebraskanGooner (@nebraskangooner) July 31, 2019
Not even Litecoin’s halving being a mere three days away and counting has been enough to cause buying to overcome the bearish selling pressure across the crypto market.
Litecoin, like Bitcoin, was having a stellar 2019, outperforming most other crypto assets or even traditional assets for that matter. LTC is still up 400% on the year, so the current “downtrend” could very well be little more than a strong correction after such a significant rally.
Related Reading | LTC Price Nears 600% Returns, But Beware of the Potential 73% Pre-Halving Plummet
The same analyst who points out the lack to a clear break of the downtrend does say that if and when Litecoin does break through the downtrend line, a retest of the resistance turned support may be a “high probability buy-in opportunity.”
With Litecoin’s halving just days away at this point, the limited pre-halving hype left may not be enough to break the downtrend. Alternatively, the halving itself throwing off supply and demand may end up being what causes the breakout, and the buy signal LTC investors are waiting for.
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