- LTC price has been in a strong bullish trend in the past few days.
- It has recovered because of the upcoming halving event.
- Litecoin's halving will happen on August 4 of this year.
Litecoin price has done well in the past few days as buyers attempt to retest the year-to-date high. LTC was trading at $93.30 on Tuesday, a few points below the year-to-date high of $105.75. The proof-of-work coin jhas jumped by more than 126% from the lowest point in June last year, meaning it has outperformed Bitcoin and the Nasdaq 100 index.
Litecoin halving countdown
Litecoin has been one of the top-performing coins in the past few months. The coin started rallying in July last year, ahead of Ethereum’s merge event. It is unclear why the coin has jumped in the past few months.
A likely reason is that many investors see Litecoin as a good alternative to Ethereum, which became a proof-of-stake (PoS) network last year. On-chain data shows that Litecoin has seen some inflows after this merge.
Also, Litecoin’s hash rate jumped to an all-time high while its mining difficulty continued. Therefore, it seems like many Ethereum miners and holders moved to Litecoin’s network.
Most importantly, Litecoin has remained relatively safe among regulators. In a recent statement, the Commodity Futures Trading Commission (CFTC) labeled Litecoin a commodity. On the other hand, because of its staking features, Ethereum is now widely seen as a financial security.
The most important reason why LTC price is soaring is the upcoming halving events, which is set to happen in the next 120 days. That halving will happen on August 2 of this year. Historically, cryptocurrencies like Dash and Bitcoin tend to rise ahead of the halving event.
For example, Litecoin outperformed Bitcoin and Ethereum in the last halving event in 2019 as it rose by over 93%. This happens because halving reduces the block rewards and the overall supply of the coin.
Litecoin price prediction
The daily chart shows that Litecoin price has made a spectacular recovery in the past few days. It has managed to rise from a low of $65.70 on March 11 to the current $92.98. It has moved to the weak, stop & reverse part of the Murrey Math Lines. The coin has managed to move above the 25-day and 50-day moving averages.
At the same time, the Relative Strength Index (RSI) has moved above the middle line of 50. It also seems like it has formed an ascending triangle pattern. Therefore, the outlook of LTC is bullish, with the next key level to watch being at $115, the extreme oversold point of Murrey Math Lines.
