• Litecoin price has slumped in the past few weeks, dropping to a low of $80.
• The price action is a reflection of the overall performance of the crypto industry, with Bitcoin remaining at the $29,000 level.
• On-chain metrics show that the hash rate has remained at an all-time high while transactions have been a bit muted.
Litecoin Price Slumps
Litecoin price has slumped in the past few weeks, dropping to a low of $80, which is the lowest level since June 21st. It has dropped by more than 28% from its highest point this year and is now underperforming compared to other cryptocurrencies like Bitcoin which currently sits at around $29,000.
Halving Event Fails to Boost Price
Litecoin recently went through its third halving event which reduces block rewards for miners but failed to boost its price as expected. This could be attributed to waning hype surrounding the halving event or simply due to general market sentiment towards cryptocurrencies right now.
On-Chain Metrics Show Mixed Picture
On-chain metrics for Litecoin shows mixed results with some positive signs and some negative ones as well. The hashrate remains at an all-time high of 800 TH/s while transactions have been somewhat muted in recent months.
Price Predictions Depend on Bitcoin Performance
The future price action of Litecoin will largely depend on how Bitcoin performs since there is a close correlation between these two cryptos. Technical analysis also suggests that LTC may be forming a head and shoulders pattern and could soon form what’s known as a ‚death cross‘ where both 50-day and 200-day moving averages make bearish crossover signals.
Overall Market Sentiment Remains Low
In general, market sentiment towards cryptocurrencies remains quite low right now despite measures like last week’s credit rating downgrade from Fitch being seen as good news for most cryptos due their anti-US dollar nature. As such it’s likely that Litecoin will continue to remain weak over the next few days or weeks until something changes fundamentally within either Bitcoin or cryptocurrency markets more generally.