The Litecoin halving event is edging in as investors count 8 days to the August 4 schedule. Halving is a process by which the amount of block rewards paid to miners is reduced by half. In the case of Litecoins, the upcoming halving event will reduce the mining rewards by 50%, decreasing it from 12.5 to 6.25 LTC per block.
LTC price experienced a decline in July, dropping from its peak of $114, setting a swing low at $87. Despite this downturn, analysts remain optimistic about Litecoin’s prospects in the long term. This optimistic outlook is primarily based on the expected decrease in the supply of new LTC tokens entering the market occasioned by the halving, scheduled for August 4. This is expected to drive up demand and propel the price of the proof-of-work (PoW) crypto upwards.
While the halving event is expected to be a significant driver for LTC price, it may not be the sole factor influencing its movement. The anticipation of reduced supply post-halving, coupled with investor speculation and interest, may contribute to a bullish sentiment surrounding LTC, prompting investors to enter the market early to secure favorable positions. Consequently, these combined factors can result in a rise in Litecoin’s price even before the halving event occurs.
Litecoin Price Breaks Major SMAs To Edge Northward
At the time of writing, Litecoin is trading at $91, as it trades in a third straight bullish session on the daily chart. LTC is up 1.82% over the last 24 hours with a slight decline of 1.48% over the past week.
Despite the recent downturn, Litecoin price remains bullish on the longer timeframes. The 12th largest crypto by market capitalization is up 2.10% over the last six months and has climbed 65% over the last 12 months. LTC also trades 27% above its January 1 opening.
The technical set-up also shows that Litcoin is gearing up for a massive lift-off. The price shattered the resistance provided by the simple moving averages (SMA) around the $90 zone on Wednesday.
Increased demand from the current levels would see LTC price rise to confront resistance from the $98 and $100 supplier congestion zones. Breaking these barriers would open the way for a climb toward the $104 local high.
In highly ambitious cases, Litecoin bulls may make a run for the $114, range high. Such a move would bring the total gains to 26%.
LTC/USD Daily Chart
Supporting the bullish narrative for Litecoin was the fact that the price sat on strong support provided by the SMAs at $90, also embraced by the ascending trendline. Moreover, the relative strength index (RSI) was facing upwards, an indication that the bullish momentum was gaining traction.
On the downside, a daily candlestick close below the SMAs at $90 would suggest the inability of the buyers to sustain the higher levels. In such a case, increased overhead pressure would then pull Litecoin first toward the $87 swing low or drop loser to seek solace from the $80 support wall.
Traders could expect Litecoin’s downside to be capped here, giving the buyers time to regroup and buy more at a discount before making another attempt at recovery.
