Litecoin price is faring well ahead of the much-awaited halving event on August 20. In just a week, LTC’s market value has increased by 20.5% to $105, allowing investors to recoup the losses incurred during the rout in June.
In contrast to the general trend among digital assets, including Bitcoin, Litecoin has experienced a consistent surge in trading volume over the past week, now standing slightly above $1 billion. With a market capitalization of $7.7 billion, Litecoin busks in the glory of being the tenth-largest cryptocurrency.
Whales In Position Ahead of The Litecoin Halving
Halving is the most significant event in the Litecoin ecosystem this year. The event, expected on August 2, will slash miner rewards by half. Like Bitcoin, Litecoin undergoes these halving cycles to keep inflation at a minimum.
Investor sentiment tends to build up positively as the halving approaches. Over the years, both Bitcoin and Litecoin have rallied due to supply and demand changes attributed to the halving event.
According to the latest on-chain analytics, whales continued with their accumulation spree even as Litecoin price dropped to $70 in early June. Whale addresses with between 10,000 and 100,000 LTC and those with between 1 million and 10 million LTC saw their risk appetite significantly increase in the last ten days of June.
Litecoin’s impressive performance in the last few weeks of June and the beginning of July shows how the uptick in the supply held by the two most prominent whale cohorts has had a positive impact on the price.
With halving less than four weeks away, it is plausible to see Litecoin extend the bullish leg first to $120 and then to $200. For now, the biggest question is whether bulls will manage to keep LTC grounded above its short-term $100 support.
The Litecoin price rally from $70 was forced to slow down upon encountering resistance at $115, followed by a correction to $105, the coin’s prevailing market value. If the short-term support at $104 fails to hold, selling pressure triggered by profit-booking moves will transition to $100.
Holding support at $100 is of particular importance to Litecoin bulls if they wish to limit declines that could quickly retest the $96 and $88.5 support areas, respectively.
Meanwhile, the Moving Average Convergence Divergence (MACD) is upholding the bullish outlook with its position grounded above the mean line (0.00). As long as the MACD line in blue holds above the signal line in red, Litecoin’s path with the least resistance will remain to the upside.
That said, the most crucial levels traders must keep in mind are the immediate support at $104 and the subsequent buyer congestion at $100. On the upside, a break above $115 would confirm another bullish trend above $120, which may quickly bring the $200 target within reach.
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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.
