With a sharp price surge over the past few days, Litecoin (LTC) is sending out a reminder that the block reward halving is just 31 days and a few hours away. According to current estimates, the Litecoin halving will occur on August 3, 2023 at 10:01 a.m. UTC (6:01 a.m. EST), ushering in a new era of “digital silver.”
The Litecoin halving is upon us
The halving thing looks like this. Miners on the network are rewarded for producing blocks of Litecoin. At the beginning it was 50 LTC per block. But every 4 years (about 840,000 blocks) this reward is halved. It is currently at 12.5 LTC and will drop to 6.25 LTC after the halving in August 2023.
Like Bitcoin, Litecoin was designed to be deflationary, much like gold or silver. Over time, the number of LTCs mined decreases, making them scarcer. We know the total supply (84 million), the block time (2.5 minutes), the halving schedule (every 840,000 blocks), and thus the end date of new coin issuance (around 2142).
Previous halvings occurred in August 2015 and August 2019. But what happened to the LTC price before and after the halving? Currently, experts are divided as to whether the LTC halving is already priced in or if reduced supply will boost prices if demand remains strong. It’s a hot topic and there is no clear consensus (unlike the bitcoin halving).
Litecoin Rally Underway Before Halving?
Nonetheless, technical analysts are bullish on LTC’s future prospects based on several key factors. Daan Crypto Trades (@DaanCrypto) notes that the diagonal resistance has been broken and forecasts:
Strong move from LTC which has now broken above this diagonal resistance. The key level to break is in the $102-104 range. A break of this area should result in a quick move higher I think.
Meanwhile, renowned analyst Scott Melker emphasizes the importance of breaking horizontal and descending resistance levels on the daily chart. Melker identifies the $107 mark as a crucial mark to break to find a clear path to higher prices.
In its recent newsletter, The Wolf Of All Streets writes that all eyes are on the Litecoin halving. Only if the Litecoin halving hype can push the LTC above both resistances does Melker expect the rally to continue:
Further inspection of the price chart shows that LTC has been making higher lows and consolidating towards the resistance zone since June of last year. The recent attempt to break the descending resistance indicates bullish momentum. Interestingly, Litecoin is up more than 30% and challenging the top of the trading range, indicating the potential for a breakout.
Considering the current technical indicators and market sentiment, expect Litecoin price to continue its uptrend.
Picture Copyright: winst2014
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