The halving of Litecoin is just under a month away and with that, the fourth-biggest cryptocurrency is starting to slow down and we can see the cracks starting to show. After seeing a high for the year at $146 at the end of June, Litecoin has seen some significant losses with more than a 40 percent drop in under a month.
But according to one analyst, the worst isn’t over yet. Benjamin Blunts has shared his forecast on Litecoin’s future price action with his prediction coming in the form of a sandwich where two pieces of good news enfold the bad news.
Cutting Litecoin in Half
In less than twenty days, Litecoin will split into two. This is one of the most anticipated events for the whole crypto space in 2019, this is thanks to its bullish nature. On August 20th, block rewards for miners will be decreased from 25 to 12.5 coins. The cutback of coins that are currently circulating reduces the rate of inflation of the crypto token from 8.7 percent per year to 4.2 percent.
$LTC in an interesting place right now, we can see a clear 5 waves up indicating a long term bottom is in, however this decline is too short to be a wave 2 so its more likely a wave A of a bigger decline
we have a catalyst coming up in a few weeks which is the halving but i feel pic.twitter.com/KCInJylKrQ
— ??BenjaminBlunts?? (@SmartContracter) July 15, 2019
As reported by CCN:
“Many people expect that this event will likely supercharge Litecoin’s value. However, trader Benjamin Blunts thinks the exact opposite.
On July 15th, the analyst took to Twitter to share a chart and illustrate how the cryptocurrency has more downside potential. In the first of two tweets, the trader mentioned how Litecoin is “in an interesting place” because one can clearly see a complete five waves up. This is an indication that the market is no longer in a downtrend and that the bottom is in from a macro perspective.”
The analyst went on to say in a later tweet that “some more time is needed before we start a new impulsive leg to smash all-time highs.”
With this in mind, Litecoin should drop around the time of the halving.
At the end of the day, despite Litecoin showing signs of bearish movement, the upcoming halving will be leveraged to dump on unwitting retail traders. At the same time, there is another way of looking at the future of Litecoin in that it might experience a second coming of sorts and could see a new all-time high.
But given that the altcoins all seem to follow in the footsteps of Bitcoin, the future of LTC could all rest on the shoulders of the leading cryptocurrencies.