Litecoin (LTC) remains bullish during the first week of July as traders continue to pour their funds into the proof-of-work (PoW) coin. The crypto is exchanging hands at $104, up 22.98% over the last seven days and 11.5% over the last 30 days. LTC is trading 45% above its January 1 opening and has more than doubled its value over the last one year, according to data from CoinMarketCap and TradingView.
With a daily trading volume of $670 million and a market capitalization of $7.69 billion, Litecoin has climbed to the #10 position on the CoinMarketCap ranking.
The uptick in LTC, witnessed over the three weeks as it outperformed other cryptocurrencies in the market is attributed to its halving event expected in August.
LTC Skyrockets 61% To Hit A 14-Month High
Litecoin price jumped about 61.18% from $71,4 on June 15 to $115 on July 3, its highest since April 2022. It has marked one of its best weeks since November 2021, climbing as much as 30%.
Traders’ interest in Litecoin has been sparked by the much-awaited halving event expected to take place on August 3. The Litecoin halving event is expected to reduce the network’s mining reward per block from 12.5 LTC to 6.25 LTC and theoretically reduce the amount of new coins entering circulation.
Market analysts believe LTC could rally toward $150 in the weeks leading up to the halving, while others expect LTC to return to $200 close to the event.
Historically, each Litecoin halving event has preceded a volatile price rally, suggesting that a similar scenario could be witnessed if things were to play out in a similar manner.
At the time of writing, LTC is trading 9% below the 14-month high above $115. This pull-back could be seen as a chance for sidelines buyers to get in on the rally at lower prices.
Therefore, increasing demand from the current level could see Litecoin rise first toward the $110 resistance level and later return to the $115 swing high. A move higher could see the PoW coin rise and collect the supply side liquidity above it toward the $135 range high.
Such a move would open the way for a return to $150. This would represent a 43% increase from the current price.
LTC/USD Daily Chart
Supporting Litecoin’s positive outlook was the up-facing SimpleMoving Averages (SMA), suggesting that there were more buyers than sellers in the market. The crypto also sat on strong support on the downside.
These were demand areas defined by the $100 psychological level, the SMAs between the $90 and $85 support zone and the major support at $75. Any attempts to pull LTC below these levels would be met by immense buying from these zones, which may in turn push the price higher.
On the other hand, Litecoin price may drop from the current price toward the $100 psychological level. Losing this support would spell doom for bulls as the $90-$85 demand zone comes into the picture.
A daily candlestick close below the SMAs would invalidate the bullish thesis, paving the ebay for a drop to the $71 swing low.
