Halving is coming… for Litecoin! – When we talk about Halving, we think directly of Bitcoin. However, it is not the only one to experience a reduction in rewards. Indeed, Litecoin will also experience a Halving, and this, before that of Bitcoin. In fact, the event should happen at the beginning of August, and the price could experience volatility in the coming weeks. While Bitcoin price is stuck below $31,000, Litecoin price recently stuck below resistance at $115. However, could the price rebound before the Halving?
The Halving: a mixed event for the price of Litecoin
To understand if Halving can be a bullish event for the price of a cryptocurrency, you have to understand what Halving is. This is an event that happens every 840,000 blocks mined. As with BTC, the reward in LTC is divided into two. Therefore, the Halving arriving in August, LTC miners will no longer receive 12.5 LTCbut 6.25 LTC per block.
- Why is this an important event?
Theoretically, if we lower the rewards, we act on theoutstanding offer. So theinflation is reduced through this mechanism. One could therefore imagine that the price of LTC could experience a rise following the Halving.
- What is it in reality?
The reality is much more complex. I’Halving effect in the short-medium term is mixed for Litecoin. After the Halving in August 2015, the price of LTC experienced a 110% increase before falling to the level known during the Halving. On the other hand, the LTC experienced a 60% drop after the last Halving in August 2019. LTC inflation is falling, but it takes asked for the course to be appreciated. On the other hand, the price tends to experience a significant increase before the event. The expression “buy the rumour, sell the news” seems once again to work with this event.
There are other factors that can affect the price: the macroeconomicsthere bitcoin trend, etc. Therefore, it is difficult to predict what will happen following the Halving of Litecoin, but we can orient ourselves on thetechnical analysis.
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Could the price of Litcoin rebound before the Halving?
Litecoin is in increase of approximately 35% since the beginning of 2023. Recently the course was rejected at the level of resistance at $115. He’s back at the level of the bracket at $95 :
Litecoin price shows a bullish momentum with bottoms and rising tops since the beginning of the year. With the recent closing beyond the high at $103the course confirms the bullish momentum. Currently, the course is evolving at the level of a important supportand at the level of 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 time being, buyers have their hands on this asset, but operators could start distributing as the long-awaited event approaches.
For its part, the RSI shows solid. Buyers have their hands on the momentum, and a bounce could intervene at the level of bearish trendline.
Historically, market operators have tended to buy LTC before the Halving. It is quite possible that smart money will take advantage of the craze caused by the Halving of Litecoin to distribute to 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, expanding above $115?
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