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Litecoin Price Forecast: LTC flashes 1.3 Billion Signal ahead of BTC Halving

By:
Ibrahim Ajibade
Updated: Apr 14, 2024, 18:12 GMT+00:00

Key Points:

  • Litecoin (LTC) price slid to a 45-day low of $70.7 on April 13, marking a 35% decline within the monthly timeframe.
  • LTC Trading Volume surged above 1.33 billion on April 14, as investors move to buy the dip ahead of the Bitcoin halving.
  • In the derivatives markets, there are more active Leveraged LTC Long positions around the current prices, signaling growing bullish momentum.
Litecoin (LTC) price forecast

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Litecoin (LTC) price slid to a 45-day low of $70.7 on April 13, marking a 35% decline within the monthly timeframe. On-chain data shows how strategic investors have capitalized on the market dip to buy billions worth of LTC ahead of the forthcoming Bitcoin halving.

Will the rising market demand, and looming short liquidations propel Litecoin price above $100 in the days ahead?

Litecoin Trading Volume Tops 1.3 Billion LTC as Investors Scoop the Dip

Litecoin price dropped as low as $70.7 on April 13, as escalating geo-political tensions sparked a sell-off frenzy across the crypto markets. However, at the time of writing on April 14, LTC has rebounded slightly to reclaim the $78 territory.

Litecoin on-chain movements recorded over the weekend suggests that a large number of investors have been capitalizing on the market dip to buy more LTC coins with one eye on the potential upside from the forthcoming Bitcoin halving.

Santiment’s historical chart below tracks the total number of LTC coins traded on any given day.

Litecoin Trading Volume vs LTC Price | April 2024 | Source: Santiment
Litecoin Trading Volume vs LTC Price | April 2024 | Source: Santiment

As seen above, investors traded 1.33 billion LTC on April 14. Impressively, it is only 26% away from matching the monthly peak trading volume of 1.8 billion LTC recorded on April 2, which had conspicuously ushered in the current 2024 peak LTC price of $112.70.

Firstly,  with the Bitcoin Halving barely 5-days away, this frenetic surge in Litecoin trading volume amid the market FUD signals that many strategic traders are buying the dip behind the scenes.

Typically, when the trading volume for a crypto asset surges, it leads to an  market depth and provide much-needed liquidity for panic seller to exit their positions without driving prices further downward.

Hence, if the LTC trading volume surges higher than 1.3 billion LTC in the days ahead, it could stabilize prices and possibly set the stage for an early rebound towards the $100 ahead of the Bitcoin halving/

Forecast: LTC could Retest $90  before Bitcoin Halving

Litecoin (LTC) price now looks set for an early rebound above $90, thanks to optimism surrounding the Bitcoin halving, as well as the increased market liquidity generated by the rising trading volumes.

Having reclaimed the $78 area at the time of writing on April 14, the next major resistance to the ongoing LTC bulls now lies at the $86 territory, according to IntoTheBlock’s Global In/Out of the Money data.

Litecoin (LTC) Price Forecast|April 2024| Source: IntoTheBlock
Litecoin (LTC) Price Forecast|April 2024| Source: IntoTheBlock

As depicted above, 995,740 addresses had acquired 9.34 million LTC at the minimum price of $86.88. Considering that this is largest cluster of holders that bought Litecoin above the current prices, LTC bulls could face a daunting challenge if majority of them look to sell when they break-even.

But, if the market demand for Litecoin intensifies as the Bitcoin Halving event draws closer, a $90 retest could be on the cards as predicted.

However, in the event of further market fluctuations, the bull can regroup at $70 psychological support territory to avert major losses.

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

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