Recently, Litecoin completed its third halving event on August 2, 2023. This halving is significant for miners, slashing their rewards in half. The initial buzz was there, and Litecoin’s mining sector seemed to be on the rise, with promising growth. However, as we look closer at Litecoin’s network stats, we start to see a different story.
The first red flag: a drop in network activity. You would expect the opposite with a halving. Interestingly, after a spike on August 2, Litecoin’s hash rate began to decline. As of now, it is hovering around 754.29 TH/s. Moreover, the market has not been kind to Litecoin. Its price took a hit and has been on a downward trend. We need to keep a close eye on this bearish market behavior.
If you are an LTC enthusiast, you have one question in mind, “Will Litecoin go up?” In this post, we will dive into the details, dissect the reasons behind these trends, and explore the future of Litecoin (LTC) in this ever-evolving sector of cryptocurrencies.
Mining Metrics and Litecoin Future Growth
Litecoin boosted in a tweet recently about the remarkable growth in its mining sector. According to the tweet, their mining difficulty reached an all-time high of 27.05M, and the hash rate steadily climbed toward its record.
These are undoubtedly positive indicators, right?
Well, hold on a minute! A closer analysis of the mining metrics reveals a different story. A chart from Coinwarz tells us that LTC’s hash rate, after a notable spike on August 2, started to decrease. As of now, Litecoin’s hash rate stands at 754.29 TH/s.
Another crucial metric for miners, the miners’ fee, has been heading in the wrong direction for weeks, as pointed out by Glassnode’s chart. Besides that, Bitinfocharts data shows a significant drop in Litecoin transactions over the past few months.
Miners’ Metrics and Litecoin Network Activity
First, let us tell you about the hash rate- it measures how much computing power is securing the network. We saw a decline in a chart from Coinwarz. Moreover, the miners’ fees have been down. After the last halving, it has become 6.25 LTC from 12.5 LTC, which can be discouraging for some miners. Besides that, the number of transactions on the Litecoin network has seen a significant drop. It also seems to be a negative sign for Litecoin’s future.
Price Decline & Impact on the Future of Litecoin
According to CoinMarketCap, LTC’s price has fallen by a significant 11% in the past week. That’s quite a drop!
Now, this decline can have some ripple effects. When prices go down, it makes mining less profitable for miners. With lower profits, some miners might decide to switch off their mining rigs or move to mine other cryptocurrencies.
In such a case, it will impact the future of Litecoin and its hash rate. However, based on our Litecoin predictions, the LTC price will trade around $100 in 2023 and surpass $300 in the next few years. Now, let’s discuss the technical aspects.
Litecoin Technical Indicators and Trend Analysis
After the fundamental discussion, let’s dive into some important technical aspects and understand the future of Litecoin:
First, we have the Exponential Moving Average (EMA) Ribbon. It shows a bearish crossover. The short-term moving averages (50-Days EMA) crossed below the long-term moving averages (100-Days EMA), indicating a potential downtrend.
Besides that, CMF is also going down. It suggests that money might be flowing out of the cryptocurrency.
Lastly, the Relative Strength Index (RSI) is neutral, which indicates that the selling pressure is stronger than the buying pressure.
Considering these indicators together, we think LTC price will be volatile for the short term, and you can expect a downtrend in the next few months.