- Litecoin price has jumped by more than 75% from the lowest level in 2022.
- The network will have a halving event in the next two months.
Litecoin price moved sideways on Tuesday as cryptocurrencies and stocks wavered and as its halving date neared. LTC was trading at $90, a few points above this month’s low of $75.40. The coin has jumped by more than 75% from the lowest level in 2023.
What is Litecoin halving?
Litecoin is a cryptocurrency that was created as a hard fork of Bitcoin, the biggest cryptocurrency in the world. The goal was to create a digital currency that has similar to BTC but one with better qualities. Some of its key features are its higher transaction speeds and lower costs. Litecoin has a supply limit of 84 million while BTC has a cap of 21 million.
Just like Bitcoin, Litecoin has a feature known as halving that reduces the amount of mining rewards by half. The goal of halving is to reduce the overall supply of a cryptocurrency and boost its price. It also stabilize the overall supply by reducing the number of miners.
Litecoin’s halving happens after every four years. According to Nice Hash, the next Litecoin halving will happen on August 2nd of this year. This means that it now has 70 days to go. It will happen when the block height reaches 2,520,000, which is higher than the current 2,478,886.
Recent data shows that Litecoin’s hash rate has been rising ahead of the upcoming halving event. It now stands at 700 TH/s , which is a few points below its all-time high of near 800 TH/s. The hash rate was at 475 TH/s in the same period in 2022. A hash rate is a figure that measures the health of a network.
Historically, Bitcoin and Litecoin prices tend to rally ahead of a major halving event. In 2021, Bitcoin surged to a record high before its halving. This anticipation also explains why LTC price has been in a strong bullish trend since July last year.
Litecoin price prediction
Turning to the daily chart, we see that LTC price has been in a slow bullish trend in the past few weeks. Along the way, Litecoin has formed an ascending channel shown in purple. The coin is now at the middle of this channel. It has also moved slightly above the 50-day and 100-day exponential moving averages (EMA).
Further, Litecoin is below the 23.6% retracement level while the Average True Range (ATR) has dipped. Therefore, there is a likelihood that Litecoin’s price will rebound and move above the year-to-date high of $105.33 ahead of the halving event. A drop below the lower side of the ascending channel will invalidate the bullish view.
