How Litecoin (LTC) Price Will Perform Ahead of August’s Halving

10 January 2023, 11:00 GMT+0000
Updated by Geraint Price
10 January 2023, 11:00 GMT+0000
In Brief
  • The Litecoin third halving will occur in Aug. 2023.
  • The Litecoin price broke out from a long-term resistance line.
  • There is long-term resistance at $130.
  • promo

The Litecoin (LTC) price shows bullish signs in the weekly time frame, which could lead to a price appreciation before the third halving in Aug.

This will reduce the block reward from 12.5 to 6.25 LTC per block. Similar to Bitcoin, the halving is engrained in the Litecoin code, and in a way, is its monetary policy. The halving will occur at block height 2,520,000, projected to occur on Aug. 4. 

What Happened to the Litecoin Price in Previous Halvings?

The first and second halvings occurred in Aug. 2015 and 2019, respectively (red icons). In both cases, significant upward movements preceded the event. 

In 2015, the Litecoin price increased by 312% in the 203 days preceding the halving. However, it decreased considerably afterward, entering a period of consolidation that continued until the next bull run. 

The Litecoin price also increased by 312% preceding the second halving, but this increase transpired over 245 days. There was an even sharper downward movement afterward, but the price rose to new highs when the next bull run began.

/Related

More Articles

Therefore, the first two halvings were characterized by similar price action. The Litecoin price appreciated considerably prior to the event and then fell afterward. 

Litecoin (LTC) Price Halving
LTC/USD Weekly Chart. Source: TradingView

Litecoin Price Prediction Until the Third Halving

The LTC price has decreased under a descending resistance line since reaching a maximum price of $413.50 in May 2021. The downward movement led to a minimum price of $40.30 in June 2022.

However, the Litecoin price began an upward movement shortly afterward and broke out from the resistance line in Oct. 2022. Shortly afterward, the RSI also broke out from its descending resistance line and moved above 50. Both these are considered signs of bullish trends.

If the upward movement continues, the closest resistance area would be at $130. An increase toward this level would fit with the historical readings regarding the halving since the price would appreciate leading up to the event.

Litecoin (LTC) Weekly Price
LTC/USDT Weekly Chart. Source: TradingView

However, the daily time frame shows that the LTC price is trading at the resistance line of an ascending parallel channel. Such channels often contain corrective movements.

As a result, the LTC price has to break out from the channel for the aforementioned upward movement to transpire. Since the daily RSI broke out from its bearish divergence trend line, a breakout from the channel is the most likely price forecast.

On the other hand, failure to do so would lead to a re-test of the channel’s midline at $70 and possibly a fall to its support line at $55.

Litecoin (LTC) Channel movement
LTC/USDT Daily Chart. Source: TradingView

To conclude, the Litecoin price has historically appreciated considerably prior to its halving but then fell sharply afterward. This occurrence also fits with the technical analysis readings from the weekly time frame.

For BeInCrypto’s latest crypto market analysis, click here.

Disclaimer

BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.