The price of LTC has surged over 27% since Thursday as the one-month countdown to the Litecoin halving begins.
Litecoin has been trending on social media as the asset approaches the halving event. Meanwhile, LTC has emerged as one of the best-performing tokens of the past week.
Bullish Signs for LTC Price
After initially breaching $100 on Friday, LTC has maintained trading over the key area of resistance since.
As a BeInCrypto technical analysis observed, the cryptocurrency shows bullish tendencies and could be close to converting the $100 resistance into support. This could lead to a major breakout and sustained bull run that may see the token hit $130 in the near future.
As the blockchain analytics firm Santiment has noted, LTC price spikes on Friday coincided with peaks in social activity volume. In other words, as Litecoin hype levels rise in anticipation of the blockchain’s halving event, there is a surge in demand for the asset.
Read More: 9 Best Crypto Demo Accounts For Trading
Litecoin Halving Anticipated for August 3
Like its more heavyweight older sibling, Bitcoin, Litecoin is programmed to undergo a block halving every 840,000 blocks.
In blockchain terminology, halvings are events that halve the rewards for block miners. Each one is programmed to happen after a certain amount of blocks have been mined.
The mechanism was designed to ensure that Bitcoin would remain deflationary. Similar protocols have been incorporated into Litecoin and other blockchains.
As with Bitcoin, Litecoin halvings typically occur every four years. Currently, each block pays out miner rewards of 12.5 LTC. After the halving, miners will receive just 6.25 LTC per block.
The conditions leading up to the upcoming Litecoin halving closely resemble those observed four years ago during the previous halving event.
Back then, the price of LTC had also been finding resistance at $100. On the day of the halving, LTC peaked at over $105. After several days of volatility, within a week, the price had fallen below $90.
Read More: Best Upcoming Airdrops in 2023
Trusted
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
