Litecoin’s price hovers around $90 before the third halving event, where miner rewards will be reduced, leading to a decrease in LTC supply.
Litecoin’s price is behaving unexpectedly before the upcoming halving event, set for Wednesday. While Bitcoin and Ethereum have shown slight gains, Litecoin is experiencing a decline and currently trades at $90.
The bearish trend in Litecoin’s price started in early July, following a significant rally before the halving event, where it surged from $71 in mid-June to $115.
LTC/USD daily chart | Tradingview
Litecoin’s price has been following a downward trendline, and its growth has been limited by resistance at $95. On the other hand, there is significant buying activity at $88, providing strong support and creating a range channel for the 12th largest cryptocurrency.
Litecoin currently has a market capitalization of $6.6 billion, with a trading volume of $1.2 billion over the past 24 hours.
LTC Price Declines Before Halving
Litecoin, like Bitcoin, is experiencing a halving event, which cuts miner rewards in half and reduces the coin’s supply to control inflation. After the halving on August 2, miners will receive 6.25 LTC for each on-chain block processed, instead of the previous 12.5 LTC.
Investors are optimistic about the halving, as the reduced supply is expected to increase demand, potentially leading to a significant post-halving rally. Charlie Lee, the project’s founder, is also bullish on LTC’s potential for massive gains.
However, it’s essential for investors to manage their expectations, as the current technical outlook suggests caution both before and after the halving event.
⚡️ Is #Litecoin going through a "buy the rumor, sell the news" scenario with less than 9 hours until the 16:34 UTC #halving? Social dominance has predictably jumped with many showing panic signs. Patience through the $LTC volatility is proving to be tough. https://t.co/0ojqI3OpUy pic.twitter.com/b8XpRhECtt
— Santiment (@santimentfeed) August 2, 2023
On the daily chart, Litecoin’s price remains below all key moving averages, including the 200-day EMA (red), the 100-day EMA (blue), and the 200 EMA (purple). If short positions in LTC keep rising, the coin could break below the lower support level at $88, leading to potential losses down to $80.
LTC/USD daily chart | Tradingview
The Moving Average Convergence Divergence (MACD) indicator has given a sell signal, which adds to the challenges faced by Litecoin. This could attract more short positions from investors. However, it is essential for investors to be cautious and wait for a confirmed breakout below the $88 level before activating their sell orders. This approach helps avoid falling into sudden bull traps.
Bullish Litecoin Price Outlook
With strong support between $88 and $90, the halving event is expected to shift the supply and demand dynamics in favor of LTC bulls. Investors should consider the possibility of a post-halving rally aiming for highs above $100. Key signals to watch for include a break above the descending trendline and the upper range channel resistance at $95.
If the price sustains above $100, it would improve the technical outlook, indicating potential profit targets at $115, $120, and $130, respectively.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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