Litecoin (LTC) is experiencing a significant price surge, outperforming the broader cryptocurrency market. Traders are displaying a bullish outlook on Litecoin due to its upcoming block reward halving event scheduled for August. In anticipation of this event, the price of LTC has skyrocketed by approximately 8.3% on July 2, reaching $116, its highest level since April 2022. The week-to-date returns have climbed over 30%, marking the most successful week for Litecoin since November 2021.
Traders and analysts are flocking to purchase Litecoin in anticipation of the halving on August 3. Crypto Tony, an independent market analyst, predicts that Litecoin could rally towards $140 ahead of the halving. Another analyst, Michael van de Poppe, expects the price of LTC to reach $200 around the event. Previous Litecoin halvings have been followed by volatile price rallies, suggesting the potential for a similar scenario if historical patterns repeat themselves.
In addition to the halving, Litecoin’s price surge can be attributed to its listing on EDX Markets, a new institutional crypto exchange supported by major firms including Citadel Securities, Fidelity Digital Assets, and Charles Schwab Corp. Additionally, BlackRock’s Bitcoin ETF filing with the SEC has boosted confidence in Litecoin and other crypto assets, leading to increased investment. Since the announcement on June 15, LTC’s price has surged by over 60%.
Litecoin’s recent buying spree has pushed its market into an “overbought” state. This is evident in the daily relative strength index (RSI), which was above 70 on July 2. The high RSI raises the possibility of a correction in the coming days, potentially causing the price of LTC to retrace to $100 as a test of key support. A decisive close below $100 could open the door for a further test of the 50-day exponential moving average (50-day EMA) at approximately $90.
Potential for Upside
Conversely, if the price of LTC bounces from the $100 support level, it could position LTC/USD for further upside. Supported by strong fundamentals, Litecoin has the potential to rise towards $130, which acts as a resistance level from January to April 2022. This price level also aligns with the upper trendline of LTC’s ongoing ascending channel trajectory, as depicted in the weekly chart below.
The price of Litecoin (LTC) continues to surge in anticipation of its upcoming block reward halving event. Traders and analysts are displaying a bullish sentiment, with predictions ranging from $140 to $200 for the LTC price. Positive developments such as Litecoin’s listing on EDX Markets and BlackRock’s Bitcoin ETF filing have further bolstered investor confidence. However, caution should be exercised as the market is currently in an overbought state, potentially leading to a correction. Nevertheless, if LTC manages to maintain its support at $100, it could see continued upside towards the $130 resistance level.
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