• Litecoin (LTC) price dropped 5% in the past 24 hours, losing 21% since July 3 peak.
• A halving event is scheduled for Aug 2 at 17:25 GMT, and it risks a 15% drop in LTC price.
• Past halvings featured an accumulation rally before and a dump after.
Litecoin Price Drop
Litecoin (LTC) price shaved 5% off its value in the previous 24 hours, dropping to $91 in the European session on Aug 2. The move came as a continuation of the bearish momentum, and the token lost 21% since peaking at $115 on July 3.
Meanwhile, the veteran altcoin eyes another 15% drop in value, as it has been trading within a consolidation channel year-to-date. The setup features two rising trendlines with a powerful mid-range. After the decline in July, Litecoin (LTC) price action retested the channel’s mid-range thrice since July 22, unable to breach it. The latest retest came on Aug 2 in the Asian-Pacific session. Given the drop in trading volumes, another channel support retest appears likely within the next two weeks. Thus, the LTC price risks declining by another 15%, as the target price would be approximately $76.
A halving event is scheduled for Aug 2 at 17:25 GMT on Litecoin blockchain which could qualify LTC for another leg down due to “buy the rumor sell news” scenario that usually occurs before such events when a coin gains traction and prices increase but slump immediately afterwards. During a halving, amount of Litecoin created each time a block is mined is cut in half from 12..5 to 6..25 LTC thereby increasing incentive to mine as much as possible just before halving and valuing existing coins more highly due to slower production of each coin moving forward which whales knew about beforehand so they bought up large amounts of LTC pumping up prices prior to dumping some later on after event happens with no immediate response from prices if past is any indication so far .
At time of first halving back in August 2015 , Litecoin was valued at around $3 per token until bitcoin rally caused prices to soar up all way till $370 by December 2017 .
Taking into account past experiences , there are high chances that current halving will have similar outcome with accumulation rally followed by dump hence investors should better watch out for signs carefully before making any decisions related to investments .