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Litecoin Value Soars as Market Anticipates Halving Event
Litecoin, the peer-to-peer cryptocurrency, is showing significant gains today, outstripping the overall crypto market as traders maintain a bullish stance in the lead-up to its block reward halving event in August.
Litecoin Ascends to a 14-Month High
On July 2, the price of Litecoin surged by approximately 8.3% to reach $116, a peak not seen since April 2022. With a weekly return climbing over 30%, it's been the best performing week for Litecoin since November 2021.
The upcoming halving event slated for August 3, has sparked increased buying activity. This event will effectively halve Litecoin's mining reward from 12.5 LTC to 6.25 LTC per block, theoretically limiting the influx of new supply.
Renowned market analyst Crypto Tony forecasts that Litecoin could soar to $140 in the lead-up to the halving event. Similarly, analyst Michael van de Poppe anticipates the price could hit $200 around the same period. Historical data shows that each Litecoin halving has been followed by a volatile price surge, suggesting a similar pattern could emerge this time.
Other Factors: EDX Markets Listing and Bitcoin ETF Applications
Besides the halving event, Litecoin's price has also been bolstered by its recent listing on EDX Markets, a novel institutional crypto exchange supported by entities like Citadel Securities, Fidelity Digital Assets, and Charles Schwab Corp.
Further fueling the surge was BlackRock's Bitcoin ETF filing with the SEC, an action that encouraged other prominent financial institutions to follow suit, providing an upward push to Litecoin and other crypto assets. Since this announcement on June 15, LTC's price has surged over 60%.
What's in Store for Litecoin's Price?
The recent buying frenzy in the Litecoin market has left it in an "overbought" condition. On July 2, Litecoin's daily relative strength index (RSI) crossed the 70 mark, indicating potential for a price correction in the coming days. If this occurs, the LTC price could potentially retract to $100 to test this crucial support level.
If it closes decisively below $100, it could prompt a test of its 50-day exponential moving average (50-day EMA; the red wave) near $90. Conversely, a rebound from $100 positions LTC/USD for further ascent.
With solid fundamentals backing it, Litecoin has the potential to climb towards $130, a resistance level that stood firm from January to April 2022. This level is also in proximity to the upper trendline of LTC's ongoing ascending channel trajectory, as evidenced in the weekly chart below.
This setup positions LTC bulls for a potential 20% gain by the end of July or beginning of August.
