Litecoin price is breaking out, up 4% on the day and trading slightly above $100. The 11th largest crypto boasts $7.3 billion in market capitalization and $640 million in its 24-hour trading volume. Unlike most of the top ten assets like Bitcoin and Ethereum, which are down 1.1% and 0.9%, respectively, to $30,385 and $1,872, Litecoin price shows 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 halvening, which slashes 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 are expecting 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 event on Litecoin price is uncertain, the crypto has already seen its market value grow by 28% in one month. Meanwhile, investors have, in the last few weeks, been filling their bags ahead of the August 2 event, which changes supply and demand dynamics.
Litecoin halving, according to past events and investor sentiment, tends to result in supply scarcity and, with demand rising, could ensue as it did in the past two halvings in 2015 and 2019.
On the other hand, some market participants argue that the halving is already priced in by the market and will have little effect on the price. Ultimately, 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 Commences Breakout Above $100
Litecoin stopped declines at $92 following an early July rejection at $115. This has, in the last week, resulted in an extended consolidation marked by narrowing Bollinger Bands.
Now that Litecoin has reclaimed higher support at $100, the resumption of the pre-halving rally is highly probable. Nevertheless, bulls still have to prove that they hold the reins by pushing Litecoin above $105 and $120, respectively.
Adding credibility to the building bullish momentum is a buy signal that has recently been confirmed by the Moving Average Convergence Divergence (MACD) indicator. As the MACD line in blue crosses above the signal line in red, traders become more encouraged to buy LTC while betting on the upcoming halving.
Crypto analyst and trader Michaël van de Poppe opines that Litecoin price is on a growth trajectory that is set to continue over the coming few weeks.
Markets are reversing.
Let’s continue on #Litecoin. pic.twitter.com/tRFfJZ9uU2
— Michaël van de Poppe (@CryptoMichNL) July 13, 2023
Captain Faibik, another popular crypto trader with over 62k followers on Twitter, said on Thursday that Litecoin is “silent before the storm.”
In the event of a trend reversal below $100, traders should be cautious to look out for support at the 50-day EMA (in red) at $97.71. The coin’s recent support at $92 will also come in handy and absorb the selling pressure to prevent declines from targeting the subsequent support level at $82.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
