Litecoin has been one of investors’ favorites over the last couple of months due to its consistent uptrend coming out of the month of June. However, recent data suggests that the interest in the digital asset may be waning even as its halving event draws closer than ever, a development that could deeply impact the altcoin’s ability to recover.
Litecoin Daily Trading Volume Falls By 28%
Litecoin’s volume was on the rise especially with its price surging above the $100 level just a few weeks ago. But with the drawdown that the altcoin has seen during this time, its trading volume has also nosedived with significant daily declines.
In the early hours of Wednesday, data from Coinmarketcap shows that the Litecoin trading volume had fallen by 28% compared to its previous day’s volumes. Like with any digital asset, a decline in daily trading volume implies that investors could be moving away from the asset, especially after securing profits from its mini-bull rally.
This decline also coincides with the altcoin’s price action that has put it in a mostly bear trend. Although LTC traded as high as $90 on Tuesday, the bears pulled it back down to $88 before the day was over. This low momentum spilled on to Wednesday, where LTC is still trading below the $90 support despite a slight recovery.
LTC price continues to trend below $90 | Source: LTCUSD on Tradingview.com
Can LTC Recover From Here?
One bull case for Litecoin’s native LTC token is the upcoming halving event. This event which happens roughly once every four years will see the block rewards for miners being cut in half once again. This will also cut the rate at which new coins are being brought into speculation, effectively throttling the inflation rate of the cryptocurrency.
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Author: Best Owie
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