Litecoin’s (LTC) price has experienced a significant increase, outperforming the broader cryptocurrency market. Traders have remained optimistic about the upcoming block reward halving event in August. On July 2, the price of LTC surged by approximately 8.3% to reach $116, its highest level since April 2022. The week-to-date returns for Litecoin have climbed over 30%, marking it as the best week for the cryptocurrency since November 2021.
Investors have been rushing to buy Litecoin in anticipation of the halving event scheduled for August 3. This event will effectively reduce the mining reward per block from 12.5 LTC to 6.25 LTC, which in turn is expected to decrease the overall supply of Litecoin. Independent market analyst Crypto Tony believes that Litecoin can rally towards $140 before the halving event, while analyst Michael van de Poppe expects the price to reach $200 around that time. Historical data suggests that each Litecoin halving has been followed by a volatile price rally, indicating the possibility of a similar scenario this time around.
Listings and Institutional Backing Drive Litecoin’s Rally
Apart from the halving event, Litecoin’s price has also been boosted by its recent listing on EDX Markets, an institutional crypto exchange backed by prominent firms such as Citadel Securities, Fidelity Digital Assets, and Charles Schwab Corp. Additionally, the filing of BlackRock’s Bitcoin ETF with the SEC has had a positive impact on Litecoin and other cryptocurrencies. Following the announcement on June 15, the price of LTC has increased by over 60%.
The recent surge in buying activity has left Litecoin in an “overbought” state. On July 2, Litecoin’s daily relative strength index (RSI) surpassed 70, indicating a potential correction in the coming days. If a correction were to occur, the price of LTC could test its key support level at $100. A decisive close below $100 would open the door for a further test of its 50-day exponential moving average (50-day EMA) at around $90. Conversely, if the price bounces back from $100, LTC/USD could experience more upside.
LTC’s Ascending Channel Trajectory and Price Targets
With strong fundamentals supporting its rally, Litecoin has the potential to rise towards $130, which is a resistance level observed from January to April 2022. This level is also close to the upper trendline of LTC’s ongoing ascending channel trajectory, as depicted in the weekly chart. This setup positions LTC bulls for a potential 20% gain by late July or early August.
Litecoin’s price surge ahead of the block reward halving event has garnered significant attention from traders. The optimism surrounding the halving, coupled with listings on institutional platforms and increased institutional interest in cryptocurrencies, has contributed to Litecoin’s recent rally. However, with the cryptocurrency currently in an “overbought” state, a potential correction could be on the horizon. Nevertheless, if the price manages to hold above key support levels, Litecoin could continue its upward trajectory towards resistance levels and potentially deliver substantial gains for investors.
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