Litecoin price rallying by 12% could undo the $1 billion worth of damages caused by halving
Litecoin price is taking its sweet time in initiating a recovery rally following the crash of early August. Since the halving, the market sentiments have changed as investors fell deeper into losses. However, there is a chance for them to recuperate these losses provided LTC climbs back to the price it was at before the halving.
Litecoin price post-halving continues to hurt
Beyond the rewards being cut in half, the LTC halving event also hit the Litecoin price negatively owing to the broader market conditions. In the span of 48 hours on August 2, the altcoin fell by more than 12% from $92 to $82 and has since been moving sideways, making a very slow recovery.
Trading at $82 at the time of writing, one of the biggest impacts on the network was taken by the 1.36 million investors that bought their 13.36 million LTC tokens at an average price of $89. The lowest band of this group was bought at $85, placing over $1 billion worth of LTC at a loss as the halving crash occurred.
Such an incident tends to impact the investors' confidence, and that does seem to be the case as over the past week, activity has been relatively lower, but the investors stand a chance to recover their losses still.
A 12% rally would place Litecoin price back above $93, in effect turning the $1 billion worth of LTC profitable once again. And the chances of the same happening are also likely, as noted by the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD).
Furthermore, the helm of the activity currently is in the hands of retail investors, particularly those who hold less than $1 worth of LTC. These small traders are conducting the most activity on the chain right now, which opens Litecoin price up to significant volatility.
This allows LTC to make quick moves, and if these moves end up following the indicators and trend upwards, Litecoin price would make back the losses it witnessed in no time.