Halving is coming… for Litecoin! – When we talk about Halving, we think directly of Bitcoin. However, it’s not the only one to experience a reduction in rewards. Litecoin is also set to experience a Halving, and this will precede that of Bitcoin. In fact, the event is due to take place at the beginning of August, and the price could experience volatility in the coming weeks. While Bitcoin’s price stalls below $31,000, Litecoin’s price recently stalled below resistance at $115. However, could the price rebound before the Halving?
Halving: a mixed event for the Litecoin price
To understand whether the Halving can be a bullish event For the price of a cryptocurrency, you need to understand what Halving is. It’s an event that occurs every 840,000 blocks mined. As with BTC, the LTC reward is divided into two. From then on, with Halving coming in August, LTC miners would no longer receive 12.5 LTCbut 6.25 LTC per block.
- Why is this an important event?
Theoretically, if you lower the rewards, you affect thesupply in circulation. Thus, theinflation is reduced thanks to this mechanism. It is therefore conceivable that the LTC price could experience a following the Halving.
- What is the reality?
The reality is far more complex. L’Halving’s effect on Litecoin in the short-to-medium term is mixed.. After the Halving in August 2015, the LTC price experienced a 110% rise before falling back to the level experienced during the Halving period. On the other hand, the LTC 60% drop after the last Halving in August 2019. LTC inflation falls, but it takes demand for the share price to appreciate. On the other hand, the share price tends to be before the event. The expression « buy the rumour, sell the news » seems to work again with this event.
Other factors that can influence price include macroeconomicsthe Bitcoin trendetc. It is therefore difficult to predict what will happen in the wake of Litecoin’s halving, but we can look to the future.technical analysis.
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Could the Litcoin price rebound before the Halving?
Litecoin is in up approximately 35% since the beginning of 2023. Recently, the price has been rejected at the resistance at $115. It is back at the support at $95 :
Litecoin’s price is showing a bullish momentum with rising highs and lows since the beginning of the year. With the recent close above the peak at $103the price confirms upward momentum. At present, the share price is trading at the level of a strong supportand the institutional bias (EMA 9/EMA 18) bullish. Thus, a rebound could occur here. In this case, the price could return to the level of the resistance at $115 (+20 %). For the moment, buyers have the upper hand on this asset, but traders could start dealing as the long-awaited event approaches.
For its part, the RSI is showing solid. Buyers have the upper hand on momentum, and a rebound could occur in the bearish trendline.
Historically, market participants tend to buy LTC before Halving. It’s entirely possible that smart money will take advantage of the craze caused by Litecoin’s Halving to distribute on newcomers. The date is approaching, and the price continues to show bullish momentum for the time being. Could Litecoin mark a new high in 2023, developing above $115?
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