- LTC price has formed a bearish engulfing pattern and dropped below key support levels.
- Litecoin’s mining difficulty and hashrate have jumped to the highest level on record.
Litecoin price has dropped in the past three straight days as the recent rally runs out of steam. The LTC/USD price dropped from a high of $114.50 on July 3rd to the current $101.43. Despite the retreat, Litecoin remains about 45% above the lowest point in June. Bitcoin Cash price has also dropped by over 20% from its highest point in June.
LTC halving ahead
Litecoin has done well in the past few months as investors focused on the upcoming halving, which is scheduled for August 2nd this year. This halving will reduce the block rewards in the ecosystem.
Historically, Litecoin, Bitcoin, and Bitcoin Cash prices tend to rise ahead of the Bitcoin halving event. This explains why Litecoin has more than doubled since November last year.
Litecoin’s key metrics have also improved in the past few months. It now stands at 765.33 TH/s, a few points below its all-time high of 800 TH/s. The hashrate started the year at about 500 TH/s. It was 412 TH/s in the same period last year.
Further data showed that Litecoin’s mining difficulty has also rose to a record high. It has a mining difficulty of 26.73 million, which is the highest level on record. The difficulty was at 14.10M in the same period in 2022.
However, the daily volume of Litecoin has been in a downward trend. According to CoinGecko, the volume stood at $762 million on Wednesday, down from 1.1 million on Tuesday. It peaked at 3.3 million on July 1st.
Meanwhile, the crypto fear and greed index has moved to the greed zone of 61. It stood at 62 on Tuesday. In most periods, Litecoin tends to do well when the fear and greed index is rising.
Litecoin price forecast
The daily chart shows that the LTC price rose to a high of $115.07 last weekend. It has now pulled back and moved below the support at $105.80 (February 16 high) and $103.26 (April 18 high). It has also formed a bearish engulfing pattern.
Litecoin remains above the 50-day and 25-day moving averages while the Relative Strength Index (RSI) moved below the overbought level. It has also formed the three black crows. Therefore, there is a likelihood that it will drop to $100 and then resume the bullish trend.
