Litecoin price is breaking out, up 4% on the day and trading just above USD 100. The 11th largest crypto has a market cap of $7.3 billion and a trading volume of $640 million in 24 hours. Unlike most of the top ten assets like Bitcoin and Ethereum, which are down 1.1% and 0.9% to USD 30,385 and USD 1,872 respectively, Litecoin price is showing vivid signs of a breakout taking shape.
Is Litecoin Price Ready for a Litecoin Halving Rally
Litecoin, like Bitcoin, goes through four-year cycles marked by an event referred to as halving or halving, which reduces the reward for mining a block of LTC by 50%.
Halving is designed to control the supply and inflation of the coin, which has a maximum limit of 84 million. In 20 days, investors expect the next LTC halving on August 2, at block 2,520,000, when the miner reward will drop from 12.5 LTC to 6.25 LTC per block.
While the impact of the halving on the Litecoin price is uncertain, the crypto has already seen its market value grow by 28% in one month. Meanwhile, investors have been packing their bags for the past few weeks ahead of the Aug. 2 event, which changes the dynamics of supply and demand.
According to past events and investor sentiment, the Litecoin halving often leads to supply scarcity and could follow, with rising demand, as with the past two halvings in 2015 and 2019.
On the other hand, some market participants argue that the halving has already been priced in by the market and will have little effect on the price. Ultimately, the LTC price will depend on how the miners, investors and users react to the event and its implications for the future of Litecoin.
Litecoin price starts breakout above $100
Litecoin stopped falling at $92 after a rejection at $115 in early July. This has resulted in extensive consolidation over the past week marked by narrowing Bollinger Bands.
Now that Litecoin has regained a higher support near USD 100, the resumption of the pre-halving rally is very likely. Nevertheless, bulls still need to prove they are in control by pushing Litecoin above $105 and $120 respectively.
Four Hour LTC/USD Chart | Trade view
Adding credence to the building bullish momentum is a buy signal recently confirmed by the Moving Average Convergence Divergence (MACD) indicator. As the blue MACD line crosses above the red signal line, traders are more encouraged to buy LTC while betting on the upcoming halving.
Crypto analyst and trader Michaël van de Poppe believes that the Litecoin price is on a growth trajectory that will continue in the coming weeks.
Markets are turning.
— Michael van de Poppe (@CryptoMichNL) July 13, 2023
Captain Faibik, another popular crypto trader with more than 62,000 followers on Twitter, said on Thursday that Litecoin is “quiet before the storm”.
In the event of a trend reversal below $100, traders should be careful to look for support during the 50-day EMA (in red) at $97.71. The coin’s recent support at $92 will also come in handy and cushion selling pressure to prevent declines from targeting the next level of support at $82.
John is a renowned crypto analyst and journalist, providing expert insights into both broad and focused aspects of the digital asset market. As a steadfast reporter, he keeps his audience abreast of the latest crypto news, delving into topics such as price trends, on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the ever-evolving metaverse.
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This post Will Litecoin Price Break $200 Soon? Litecoin halving in just 20 days
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