Litecoin (LTC) price has not recovered since its 12% pullback following the halving on August 2. Faced with the risk that the costs would exceed the value of the block rewards, Litecoin miners began to deplete their reserves. So, is the LTC price at risk of experiencing a larger price drop?

Litecoin's highly anticipated halving took place on August 2, after which the price tumbled by 15% from $94 to $80. On-chain data illuminates how continued selling among Litecoin miners can put the LTC price at risk.
Litecoin miners dumped $5 million in the last 5 days
With the August 2 halving event, the block rewards given to miners were reduced from 12.5 LTC to 6.25 LTC. Amid the rising costs of running mining operations, Litecoin miners are already starting to deplete their reserves rather than holding them long-term.
On-chain data from IntoTheBlock shows that LTC miners have drained 60,000 tokens from their reserves in the last 5 days. As shown below, miners had a cumulative reserve balance of 2.48 million LTC on August 3. However, at the close of August 6, this value dropped to 2.42 million LTC.
Miner Reserves evaluates miners' trading activity by monitoring the cumulative balances in wallet addresses linked to recognized miners and mining pools. A decrease in miners' reserves is a signal that miners are actively selling their block rewards.
As seen above, LTC miners quickly consumed 2.5% of their total assets in just 5 days after the recently ended halving.
Specifically, the value rewards per mined block have been halved to 6.26 LTC. This means that many LTC miners may now have to keep selling to keep up with the rising overall mining costs.
If Litecoin fails to post significant gains in the coming weeks, LTC price will risk falling into a downward spiral.
On-chain data points to more sales
Despite the recent price drop, on-chain data shows that there is still room for many Litecoin holders to sell at a healthy profit in the coming weeks.
As seen below, the Litecoin MVRV ratio shows that most investors who bought LTC in the last 30 days still have unrealized profits of around 7%.
MVRV shows the net financial positions of the last investor.
With current holders making 7% profits, it means they have enough flexibility to sell more of their holdings until the LTC price approaches its range around $77.
As a result, Litecoin risks returning to strategic holders, and miners may tend to sell until the LTC price drops another 7%. .
LTC price prediction: possible correction to $77
Considering the on-chain factors reviewed above, LTC price risks falling below $75 in the coming weeks.
However, GIOM data shows that Litecoin bulls will offer initial support in the $78 range. In that region, 926,000 addresses had purchased 4.96 million LTCs at an average price of $77.
However, if bearish Litecoin miners break through this buy wall, LTC could drop to $75 as predicted.
On the other hand, if LTC can rise above $90, the bulls could regain control. However, there is a risk of a possible reversal in the $85 range. In this region, 371,000 investors purchased 2.62 million tokens at a maximum price of $85. Therefore, if these investors realize their profits, a new downtrend may be triggered.
Still, if Litecoin can successfully pass this resistance, the next target will be at $100.
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