Why did Litecoin fall 25% after the halving? Analysts say the downward trend will change

Litecoin has been shrouded in negative sentiment as of late, largely due to its lackluster price action following its recent halving event and a recent dusting attack that affected nearly 300,000 LTC addresses on Binance.

Despite waning optimism surrounding LTC, analysts are now cautiously noting that the cryptocurrency may be approaching a level of “bedrock support” that could lead to a turn in its recent downtrend, and today’s price performance could support this view.

Litecoin price plummets 25% since halving event

At the time of writing, Litecoin is up nearly 7% at its current price of $76.45, marking a slight recovery from its recent lows of $71.

Since Litecoin’s halving event in early August, widely seen as a bullish catalyst, the cryptocurrency’s price has fallen by nearly 25%, marking a very disappointing reaction to the claims of many analysts that the halving would drive LTC higher.

Importantly, however, this poor price performance comes during a period of great uncertainty in the crypto markets, with LTC’s recent price action largely in line with that of many other major altcoins.

Loma, a popular cryptocurrency analyst on Twitter, explained in a tweet yesterday that despite the conflicting opinions on Litecoin, he believes that Litecoin is currently trading just above “bedrock support” levels, and today’s price surge may confirm this view.

“Humiliate me if you will. Let’s assume for a moment that $LTC is not, in fact, a scam. Let’s assume that somehow, miraculously, crypto twitter is wrong the first time. An objective chart shows bedrock-supported LTC in a descending wedge. That’s the biggest chance.”

Did the LTC dust attack affect recent price action?

Recently, Litecoin wallets on cryptocurrency exchange Binance were hit by a widespread “dusting attack” where scammers sent small amounts of LTC (called dust) to hundreds of thousands of wallet addresses in an effort to gain information about end-user data.

“The recent $LTC dusting attack against @binance affected 294,582 addresses. During our analysis, we also found a similarly large attack from April this year.”

The scammers then attempted to blackmail the wallet owner using the data they had about the wallet, but the attack only worked if the user transferred the dust transactions they received.

While it is unclear whether the attack has added downward pressure to Litecoin’s price action, it is certainly another factor that could spook some LTC investors and add some pressure to the negative sentiment currently surrounding the cryptocurrency.