Litecoin halving to spark price fluctuations
The last couple of weeks have been favorable for the cryptocurrency market, with growing speculations about the approval of the first Bitcoin ETF in the U.S. boosting market momentum. However, recent weak U.S. and Chinese economic data, along with escalating Sino-U.S. tensions, have slightly dampened investor sentiment.
The U.S. Commerce Department reported that factory orders in May were lower than expected, heightening fears of an economic slowdown due to high-interest rates, especially after manufacturing data from Monday showed further decline.
Despite this, Litecoin has maintained an upward trajectory, even during the current market correction. However, it is expected to experience significant volatility in the coming days, with the upcoming halving event on August 2, 2023, likely to trigger this price movement.
Many analysts believe Litecoin will outperform other altcoins, and this could be influenced by the halving event, where mining rewards will be cut from 12.5 LTC per block to 6.25 LTC per block.
Analysts have a positive outlook on Litecoin
Though the halving event is still several weeks away, a new rally may begin soon as cryptocurrency traders often price in major events well in advance. The Litecoin halving cycle occurs every 840,000 blocks, and the next halving is due in August 2023. Two previous halvings took place in 2015 and 2019.
The first halving in 2015 reduced the Litecoin block reward from 50 LTC to 25 LTC, and the second halving in 2019 halved the reward again, from 25 LTC to 12.5 LTC per block.
The key challenge for Litecoin is to build enough momentum to break the $115 resistance level, where the coin has historically faced difficulties. Popular crypto analyst Benjamin Cowen pointed out that Litecoin tends to see a price increase in June and July of halving years, making a bullish prediction as the event nears.
Miners are also bullish on Litecoin ahead of the halving. On-chain data shows that Litecoin miners have been accumulating coins since the beginning of June. According to IntoTheBlock, Litecoin miners added 270,000 coins to their reserves between June 1 and July 4.
Litecoin (LTC) technical analysis
Since June 14, Litecoin (LTC) has been on an upward trend, rising from $71.09 to a peak of $114.98. Currently, the price sits at $101. As long as LTC stays above $90, it’s too early to call for a trend reversal, and the coin remains in the “BUY-ZONE.”
Key support and resistance levels for Litecoin (LTC)
In the chart from November 2022, I’ve highlighted critical support and resistance levels that can help traders predict price movement. Litecoin (LTC) has pulled back from its recent highs, but if the price surpasses $115, it could face resistance at $120 or even $130.
The main support level for Litecoin is $90. A drop below this level would signal a potential “SELL” and could open the path to $85. If the price falls below $80, the next support level is at $70.
Factors supporting the rise of Litecoin (LTC) price
The volume of LTC traded in recent weeks has significantly increased. One key factor that could push Litecoin’s price higher is the upcoming halving event, scheduled for August 2023, which will reduce mining rewards from 12.5 LTC per block to 6.25 LTC.
From a technical standpoint, Litecoin (LTC) still has potential for upward movement, especially if Bitcoin’s price continues to perform well.
Potential risks for Litecoin (LTC)
While Litecoin has shown strong performance in recent weeks, it’s important for investors to maintain a defensive approach given the ongoing uncertainty in the macroeconomic landscape.
The key support level for LTC remains at $90. If the price falls below this threshold, the next target could be $85. Additionally, Litecoin’s price often correlates with Bitcoin’s, so if Bitcoin drops below $28,000, it could negatively affect Litecoin’s price as well.
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Experts expect Litecoin to outperform other cryptocurrencies in the short term, rising when the broader crypto market increases and experiencing lower downside during market downturns.
The upcoming halving event in August 2023, where mining rewards will decrease from 12.5 LTC to 6.25 LTC, has created a lot of positive sentiment around Litecoin. Cryptocurrency traders often price in such events ahead of time, so we may see a rally in the weeks leading up to the event.
Notable crypto analyst Benjamin Cowen has noted that Litecoin has historically seen gains in the June/July period of halving years, and he remains bullish on Litecoin as the halving draws closer.
Жауапкершіліктен бас тарту: Cryptocurrencies are highly volatile and may not be suitable for all investors. Never invest money you cannot afford to lose. The information presented here is for educational purposes only and should not be considered as financial or investment advice.
