Litecoin, the forefront crypto in terms of growth, has fallen down the past week. Litecoin has grown more than three times its price from the start of the year and was looking to continue its bullish form. Litecoin’s growth has been one of the most impressive this year, even rivaling Bitcoin’s insane rally right now. While Bitcoin still looks forward to bullish tendencies, Litecoin has fallen down in price and volume.
Litecoin’s Price Drop – In Numbers
Litecoin, which was trading at the highest amount of US $145, dropped to $130. The market predictions are looking to be of bearish sentiments. These bearish drops predict that the price can drop to $120, where $130 is acting as a psychological barrier. It can also drop as low as $112 if bearish sentiments are dominant. All these predictions are in accordance with simple moving averages. The bullish sentiments predict that it can still soar up to $140 and can break its $145 barrier.
Litecoin’s Reason For Sudden Price Fall
The reason was Litecoin’s insane growth was the halving event it will have on 8th August this year. The halving event basically means all the rewards will reduce to half for the same amount of mining. So, investors have been nonstop mining for accumulating before this halving event. This halving event will result in the scarcity of Litecoin in the crypto market, so investors are mining in anticipation of a price rise in the future.
While this explains the price rise of Litecoin, the sudden fall of Litecoin has the crypto community puzzled. It’s rally predictions weren’t showing any signs of a pullback in price. This price fall can be due to a reason. The reason can be the market fatigue of Litecoin. Only a limited number of investors can invest in a specific amount of time. So, it can be that no new investors are looking to mine this altcoin which created a decrease in demand.