Litecoin price keeps rising ahead of LTC halving.
The price of Litecoin has continued to rise as the LTC halving, which is scheduled to take place on August 2, is getting closer. The halving, traditionally known as a bullish catalyst, has been talked about since the beginning of the year. The price of Litecoin has risen by more than 60% from June 25 to this day, and the reason for this is not far-fetched.
The Litecoin halving occurs every four years and is usually carried out to reduce the block reward miners get when mining Litecoin. The first halving occurred in 2015, and the block reward for mining Litecoin was reduced from 50 LTC to 25 LTC. The one that occurred in 2019 reduced the block reward from 25 LTC to 12.5 LTC. The one stipulated to occur on August 2, 2023, will reduce the block reward from 12.5 LTC to 6.25 LTC. The four-year halving is attributed to many cryptocurrencies that use the proof-of-work consensus mechanism, including Bitcoin, and is carried out for the benefit of the blockchain.
A Look into Litecoin Price Close to Past LTC Halving Events
Looking at the price of Litecoin in the past, it can be easily noticed that the price of Litecoin has plunged close to halving. In 2015, the price continued to rise until July 10, when it started to drop from $9. By the halving day on August 26, it had fallen to $3.
The second one occurred on August 5, 2019. Just like in 2015, the price had a long increase until June of that year. However, it dropped from $147 to $91 between June and August, when the halving occurred.
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A look into history makes it obvious that the price of Litecoin usually dropped close to halving, which may be due to different reasons. However, we cannot conclude that the same will happen this year in the crypto market, as we now have more players, including large institutions, and even stricter regulations. Moreover, the market is now much more mature than it was in 2019.
At the same time, as we know that market movement is also based on sentiment and that past events can, to some extent, be used to predict future events in technical analysis, one may expect the price to reduce close to the halving period.
A pseudonymous analyst, Rekt Capital, believes that Litecoin is currently following a script and that the price could reach a level that was last reached in January 2022. According to him, since the price has broken the $93 resistance, there could be a surge to as high as $140 before the halving event.
The price of Litecoin after halving may also depend on different factors, like the demand for LTC and the cryptocurrency market sentiment amid other market conditions. If the present demand for LTC is sustained or increases, we may expect the price to keep increasing after the halving. If the demand drops or the general market sentiment towards crypto is negative, there may be a price reduction.
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