As the Litecoin halving approaches, a warning came from the popular analyst: Could a 40 percent drop come?

Litecoin (LTC), one of the favorite altcoins in the cryptocurrency market, led the top ten cryptocurrencies with a 25% rally last week. On Monday, July 3, the price of LTC hit a new 2023 high of $114 with a market cap of over $8 billion.
The Litecoin halving, which will take place approximately 40 days from now, also creates a strong bullish sentiment for the trendy altcoin. While analysts say its price will rise further, on-chain data shows that investors should be a little more careful. Popular crypto analyst Ali Martinez said:
Currently, Litecoin MVRV 30D is hovering around 35%. Historically, every time the MVRV 30D has crossed the 30% mark since 2018, it has usually been followed by a sharp price correction. This usually means an LTC price drop ranging from 30% to 40%.
Earlier this year, LTC price exceeded $100 twice. However, the trendy altcoin soon faced strong selling pressure and then saw a drop of around 20% before rising once again.
Litecoin halving is approaching
According to the schedule, the Litecoin blockchain will go into halving in the middle of next month. Therefore, investors are preparing for an important event called “halving”. This event, which will take place on August 5, will halve the amount of new tokens created. This decline in new tokens entering the market is expected to have an impact on supply and demand, potentially leading to price increases.
Since the beginning of 2023, the price of LTC has increased by about 53%. The altcoin managed to reach its highest point of $114.50 on July 3. The upcoming halving has sparked excitement and anticipation among investors as they hope that Litecoin will push its price even higher.
Last week, the Litecoin hashrate hit an all-time high since network activity spiked ahead of the halving. In June, Litecoin hashrate experienced a notable increase. This increase in hashrate was accompanied by a corresponding increase in mining difficulty. This made discovering new blocks even more difficult.
Miners have responded to this challenge by adding more machines to their mining operations, aimed at increasing their chances of successfully finding blocks. As a result, the overall hashrate rose.
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