Altcoins
Litecoin Price Analysis Amid Countdown to the Halving Event
Litecoin price has been in a steep freefall since the start of July after ending the previous month at a multi-month high. The altcoin has crashed by more than 17% over the past five days but remains 36.78% higher in the year to date. LTC’s total market cap has slipped by nearly 8% over the past 24 hours to $7 billion, with the total volume of the asset traded over the same period dipping by more than 6%.
What’s Driving LTC?
Litecoin price has been in the red for the past few days ahead of its fast-approaching halving event slated for August. The crypto market has been in jitters for the past few days as investors digest the Fed’s meeting minutes for June. The minutes signaled the likelihood of another interest rate hike this month. Traders are pricing in an 88% chance of a 25-basis point hike in the US Federal Reserve’s meeting for July.
The global crypto market cap has crashed by more than 3% over the last day to $1.17 trillion, while the total crypto market volume increased by 6%. A look at the Crypto Greed and Fear Index indicates a decline in confidence among investors. The Index has dipped from a Greed level of 63 to a neutral level of 59 amid macroeconomic concerns.
Despite its downfall, excitement by investors around the halving event has prevented the altcoin from falling further. With this event just around the corner, whales have already started making their moves, driving interest in the crypto asset higher. As such, the LTC price has jumped by 13% in the past week.
The Litecoin halving event is set to take place on August 02, 2023. The first LTC halving event took place in 2015 and the last halving event happened in 2019. This event approximately happens every four years or after the mining of 840,000 blocks, where the block reward is reduced by half.
By halving the block reward, Litecoin aims to maintain a controlled and limited supply of its tokens over time. This approach is based on the belief that with the scarcity in supply, there will be an increase in demand, thus driving the LTC price higher. According to most crypto experts, the Litecoin price usually doubles just before a halving event. Investors expect the LTC price to skyrocket by more than 300% after the event.
Litecoin Price Analysis
Litecoin price has slipped from its multi-month high of $115 over the past week ahead of its halving event. Even so, the altcoin has remained above the 50-day and 200-day exponential moving averages, while its Relative Strength Index (RSI) moved slightly lower, below the signal line.
As such, there is a likelihood that the Litecoin price will continue to move higher in the medium term as the highly anticipated halving event approaches. If this happens, the immediate resistance level to watch will be this year’s high of $115. However, a move below the crucial support level of $93.30 will invalidate the bullish thesis.
LTC Price Chart
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
Solana price has jumped more than 8% over the past week, breaching the important level of $60. At the time of writing, Solana was trading 3% higher at $61.07. The asset’s total market cap has climbed to $25.9 billion over the past week, ranking it the 6th largest cryptocurrency after XRP. The total volume of SOL traded over the last day has declined by 8%.
SOL’s Bullish Cues
Solana’s price has been among the best-performing cryptocurrencies this year amid continuous growth. The “Ethereum killer” has consistently impressed investors throughout the year on the back of a resurgence in bullishness, which saw SOL’s price climb more than 513% in the year to date. Institutional investors have also shared the bullish sentiment, making Solana their most preferred altcoin.
In the week ending November 24, Solana recorded inflows worth nearly $3.5 million, significantly more than the other altcoins’ inflows combined. The asset’s monthly inflows were higher at $40.2 million, lower than Ethereum’s $99.6 million inflows in the same period. Other altcoins, including Litecoin and Ethereum, noted significant outflows, making Solana nearly half of the home for DeFi. This implies that when it comes to institutions, Solana is currently the best-performing altcoin with the potential of a long-term rally much higher than other digital assets.
Notably, the Solana DeFi ecosystem accomplished a significant milestone earlier this week. Its Total Value Locked (TVL) hit a new yearly peak of over $655 million,…
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