A few weeks ago, Litecoin halved its reward to miners. Going into this event many expected Litecoin to rally hard. Already, the coin was up by more than 250% from its year low. This had seen the digital asset climb from under $40 to hit a year high of over $120. Much of the gains were rumored to have been triggered in anticipation of the halving. The event should have easily seen the asset extend its gains to hit new highs. But days to the halving, the asset seemed to slow down. During and after, the asset’s gains were no more than those seen when there is a new development in a project. The gains were incomparable to those seen during the first halving.
Why Didn’t The Litecoin Halving Trigger A Hard Rally?
Arguably, going into the halving the wider market was strongly bearish. This would have affected Litecoin prices seeing most investors tighten their grip. But this is not to say that the asset couldn’t have resisted the bearish pressure. Furthermore, given Litecoin is a top ten ranked coin, the asset could have easily triggered a bullish trend.
Most likely, there was too much hype around the halving and the coin had been overbought. This could explain the prices stalling during and after the halving. There was also concern that altcoins would not rally in the near future as Bitcoin dominated the market. This made may investors wary and demand remained relatively low. It is likely that we are yet to see the full price action from the coin. But so far it has been a failed upward trigger.
What To Expect In The Months To Come
As the full effect of the halving is felt, we expect prices will begin responding and rising. However, this has to be coupled with altcoins beginning to rally. For months now, they have been overshadowed by Bitcoin seeing them bleed. In the months to come, this should drop and see altcoins get a favorable share of the market. In these circumstances, Litecoin should easily rally as expected.
To further fuel a Litecoin rally in the months to come is development. Charlie Lee the founder says that this is still in progress. In a tweet, the founder explained that in spite of many claiming the project is not developing, the team is hard at work.