- After the third halving event, Litecoin’s block rewards will drop from 12.5 LTC to 6.25 LTC.
- But due to the volatility of Bitcoin, the price of Litecoin continues to float around the $80 mark.
- A bounce above the $85.45 resistance level might spark a rally that surges past the crucial $100 mark and targets $105.79.
On August 2, 2023, Litecoin will experience its third halving event, which will lower its block rewards from 12.5 to 6.25 LTC. But due to Bitcoin’s volatility and the unpredictability of US regulatory agencies, all prophesies and estimates regarding the price of LTC have fallen short of expectations.
Litecoin’s Third Halving Event
As previously discussed, Litecoin’s halving event is a blockchain upgrade that takes place once every four years or when 840,000 blocks have been minted. The block rewards for miners will be reduced as a result of this event.
The third Litecoin halving event is scheduled for August 2, 2023, or after 24,646 blocks. The first two halving events took place in 2015 and 2019, respectively.
Why Is Halving So Important?
Reducing the item’s rewards in half has two effects: it makes the asset scarcer, and if demand stays the same or rises, it will lead to a sharp spike in the price of the underlying asset.
It is a method of causing a negative supply shock, to put it briefly.
In anticipation of a surge, cryptocurrency traders frequently front-run the market. In the event that enough investors reach the same conclusion, the network effects trigger a bull run before the price halving. Prices for Bitcoin and Litecoin exhibit the same trend weeks or months before the halving phase.
Prior to the third halving event, many investors anticipated something similar for Litecoin, but bulls didn’t come through. Investors need to pay exclusive attention to Litecoin price actions, which point to an upcoming rally, with around six weeks till the next halving.
Is The Price Of Litecoin About To Explode?
The $82.81 resistance level is currently being retested by the price of litecoin on the daily chart following a 12% increase over the past five days. Even though traders could be experiencing FOMO, they shouldn’t act right away. Market participants should prepare for a modest recovery into the support range of $78.97 to $76.15.
For LTC bulls to kick off a recovery rally, a bounce from this position must be followed by a successful recovery over the $82.81 and $85.45 resistance levels.
By doing so, the price of Litecoin can reach the psychological milestone of $100 and retest the all-time high of $105.79.
When the Awesome Oscillator (AO) and Relative Strength Index (RSI) rise above their mean levels, it indicates a buying opportunity.
Investors must wait for rejection at the $82.81 or $85.45 barriers even though the bullish view is very risky. The bullish thesis for LTC will be disproved with a break below $76.15 on a daily basis, which could also lead to a sharp fall down to the range low of $65.10.
DISCLAIMER: The data on these pages includes forward-looking statements that are subject to risks and uncertainties. Markets and financial instruments mentioned on this page are provided for informative purposes only and are not intended to be taken as recommendations to purchase or sell these assets. A comprehensive investigation should be conducted by you before making any investment decisions.