Litecoin Price Prediction: Will LTC Recover after A Bearish Post-Halving?

Litecoin (LTC) price action as defined by volatility following the halving even which took place on August 2. LTC swiftly descended below crucial support levels. Although there were expectations of a bullish reversal for LTC from these lower points, the required buying momentum is still absent.

Moreover, present on-chain metrics suggest that although investors are discreetly taking action, the potential upside could be capped at $85.

Where is Litecoin Price Headed Next?

The Litecoin halving event turned out to be a sell the news occurring that saw LTC dop 14.78% from $94 to $80. This led to oversold conditions that saw a slight recovery to $85 before the price turned to the current level at $81.

Since the downturn, the proof-of-work (PoW) crypto has been trading between the $80 support level and the resistance at $85. Note that the Relative Strengty Index (RSI) is still in the negative region. The price strength at 18 suggested that there was still more room for the downside.

Therefore, a daily candlestick close below $80 woud trigger massive sell orders with key levels to watch in its downward path being the $75 major support level and the $70, psychological level.

In the worst case scenario, Litecoin price may drop further to revisit the mid-June swing low at $71. This would represent a 13% decline from the current price.

LTC/USD Daily Chart

On the upside, the RSI painted extremely oversold conditions for LTC. This meant that a trend reversal could take place as seller exhaustion kicks in. Unfortunately for buyers, Litcoin's upside could still be capped at the $85 level.

This is because beyond that the priec faces stiff competition from the supplier coongestion zone between $85 and $92. Supporting this is on-chain metrics from IntoTheBlock, a blockchain data and market analysis firm. Its In/Out of the Money Around Price (IOMAP) model showed that LTC faced relatively stiff resistance on the upside compared to the support it sat on.

For example, the priec range between $86 and $89 was within the supplier congestion zone mentioned above. It is where approximately 3.07 million LTC by roughly 580,580 addresses.

Litcoin IOMAP Chart

Any attempts to push the priec above this zone would be met by immense selling from this cohort of investors who may wish to break even.

Therefore, although LTC may embark ona recovery, going beyoind $85 would be an uphill task as it trades below key levels including all the major SMAs.