coinspress.com
According to a prominent crypto analytics company, there are indications that the price of Litecoin (LTC) might experience an upswing before its halving event.
In a recent publication, Santiment suggests that the forthcoming LTC20 halving, which reduces the number of newly generated coins awarded to miners by half, will positively impact Litecoin’s price.
Santiment highlights the notable increase in Litecoin’s on-chain volume, which, if sustained, could contribute favorably to its price. This surge in on-chain volume signifies the involvement of significant investors who are accumulating LTC in anticipation of the halving.
Additionally, the number of unique addresses interacting on the Litecoin network has reached its highest level in over a year, indicating a keen interest in purchasing LTC at its current price.
It wouldn’t be surprising to witness a price surge above $100 before a possible temporary decline, as whales (large-scale investors) tend to manipulate prices during halving events.
The Litecoin network has experienced waves of daily transactions exceeding $1 million, followed by a sudden 95% decrease in activity for a week, suggesting unusual market behavior.
Santiment predicts that trading volumes may slow down in the short term but will likely pick up again in mid-June as traders anticipate the halving event. As a result, it is reasonable to expect a temporary cooling off in average trading returns for Litecoin in the short and mid-term timeframes.
However, as the August event approaches (around mid-June), a significant increase in anticipation for LTC 20 could occur.
The Litecoin halving is scheduled for August 10, 2023.