With a price increase of over 18% within the last 24 hours, Litecoin (LTC) is sending out a reminder today that the halving of the block reward is only 33 days and a few hours away. Based on current estimates, the Litecoin halving will take place on August 3, 2023, 10:01 am UTC (6:01 am EST), ushering the “digital silver” into a new era.
Litecoin Halving Is Just Around The Corner
Here’s the deal with the halving. Miners in the network get rewarded with Litecoin for producing blocks. At the beginning, it was 50 LTC per block. But every 4 years or so (around 840,000 blocks), that reward gets cut in half. Currently at 12.5 LTC, it will drop to 6.25 LTC after the August 2023 halving.
Like Bitcoin, Litecoin was designed to be deflationary, like gold or silver. As time goes on, the number of LTC mined decreases, making them scarcer. The cool thing is that Litecoin’s issuance is predictable. We know the total supply (84 million), block time (2.5 minutes), halving schedule (every 840,000 blocks) and thus the end date of the issuance of new coins (around 2142). The network controls issuance through consensus.
Past halvings were in August 2015 and August 2019. But what happened to the LTC price pre- and post halving? Currently, experts are divided if the LTC halving is already factored in or if the reduced supply will boost prices if demand remains strong. It’s a hot topic and there is no clear consensus (in contrast to the Bitcoin halving).
Litecoin Pre-Halving Rally Underway?
Nonetheless, technical analysts are optimistic about LTC’s future prospects based on several key factors. Daan Crypto Trades (@DaanCrypto) notes the breakthrough of diagonal resistance and predicts:
Strong move by LTC which has now broken out above this diagonal resistance. The main level to break is the $102-104 area. Breaking that should lead to a quick move higher I reckon.
Meanwhile, renowned analyst Scott Melker emphasizes the importance of overcoming horizontal and descending resistance levels in the 1-day chart. Melker identifies the $107 mark as a crucial level to surpass for a clear path to higher prices.
In his latest newsletter, “The Wolf Of All Streets” writes that all eyes are on the Litecoin halving. Only if the halving hype can propel Litecoin above both resistances, Melker expects the rally to find a continuation, adding:
The blue zone has been the main resistance for over a year. A close above $107 and that zone will be cleared. Keep an eye on this.
Further examination of the price chart reveals that LTC has been forming higher lows since June of the previous year, consolidating towards the blue resistance zone. The recent attempt to break through descending resistance indicates bullish momentum. Remarkably, Litecoin has risen over 30% and is challenging the range high, indicating the potential for a breakout.
Considering the current technical indicators and market sentiment, it is reasonable to expect Litecoin’s price to continue its upward trajectory. Breaking the $102-104 area would be a significant milestone for LTC, leading to a quick move higher, as predicted by Daan Crypto Trades. Scott Melker suggests that a close above $107 and the blue resistance zone would clear major hurdles and potentially pave the way for a Litecoin halving rallye.
At press time, the Litecoin price traded at $101.95.
Featured image from Forbes, chart from TradingView.com
