Litecoin halving approaching and price already showing signs of exhaustion

After the new yearly high of $147 on June 22, Litecoin has depreciated almost 25 percent signaling that hype around the upcoming block rewards reduction event could be already priced in.

On Aug. 5, 2019, Litecoin will go through a process called halving.

Due to the significant supply reduction, the halving tends to have a direct impact on Litecoin's market valuation, as evidenced by the previous halving on Aug. 26, 2015.

From that date on, Litecoin began a 73.2 percent correction to trade at $2.40 just one day before the halving took place.

Today, just 39 days away from this year's halving event, different technical indexes are signaling that Litecoin could be preparing for a major correction similar to what happened in 2015.

Breaking below this price hurdle could take this cryptocurrency down to the next level of support at $93.5, $70, or even $57. In addition, the ascending parallel channel where Litecoin's price action has been contained since mid-December 2018 on the 3-day chart could be about to break because the sell signal given by the green nine candlestick, per the TD Sequential Indicator, has been validated.

If the bottom of the channel is able to hold the price of Litecoin from a further drop, once again, it could catapult it to new yearly highs.

If the all bearish signals previously described are validated and history repeats itself, Litecoin could fall another 28 percent to try to test the support given by the 200-day moving average on the 1-day chart just as it did in 2015, which will represent a 53 percent correction from the recent high of $147 all the way down to around $69.Overall Sentiment.

A scenario similar to what happened around the first Litecoin halving could be playing out and this cryptocurrency could be about to drop another 28 percent.

If it is able to hold, it could continue to contain Litecoin's price allowing it to make higher highs and higher lows.