Key Insights
- The next Litecoin halving is approaching, sparking predictions and discussions among analysts and the crypto community.
- Miners have been accumulating LTC reserves, anticipating further price growth.
- Analysts and on-chain metrics indicate a bullish sentiment towards Litecoin, with historical data suggesting potential price increases leading up to the halving, although a post-halving decline is also possible.
The 2023 Litecoin halving is less than 30 days away. The next Litecoin halving is scheduled for August 3, 2023. With its inception dating back to 2011, the upcoming Litecoin halving event will signify a significant milestone as it marks the third halving occurrence in the history of Litecoin.
What is Litecoin halving?
Litecoin halving refers to a pre-programmed event in the Litecoin cryptocurrency protocol where the rate at which new Litecoin coins are created through mining is reduced by half. It occurs approximately every four years, or after every 840,000 blocks are mined.
The purpose of the halving is to control the supply of Litecoin and ensure its scarcity over time. As a result of the halving, miners receive half the number of new Litecoins for each block they successfully mine, from 12.5 to 6.25 LTC, which can impact the overall mining profitability and potentially influence the price of Litecoin in the market.
As the Litecoin halving approaches, leading analysts and ordinary members of the crypto community share their LTC price predictions. While the countdown is underway, popular crypto analysts Rekt Capital and IntoCryptoVerse turned to historical data to predict LTC price action.
What should you expect from Litecoin Halving 2023?
Popular crypto analyst Benjamin Cowen @IntoTheCryptoVerse shared his Litecoin price prediction with 750k followers. In a tweet dated July 4, he revealed that LTC has historically been approaching highs in June/July in the year of the halving.
In the chart above, Cowan has marked the points where the price of the asset peaked before the previous two halvings in 2015 and 2019.
@Rekt Capital is another famous crypto analyst who gave a bullish price prediction for Litecoin. In a June 4 tweet, he revealed that LTC tends to top out in the weeks leading up to the halving.
However, he warned that usually the price of Litecoin declined significantly immediately after this important event.
Miners are actively building up LTC reserves
Miners have also taken a bullish stance on Litecoin. According to on-chain metrics , between June 1 and July 4, they replenished their reserves by 270,000 coins. At the current price of $108, they are worth about $30 million.
Such a long accumulation indicates that the miners are hoping for further growth in the price of the asset.
Litecoin price may rise to $120
Leading up to the halving on August 5, 2015, the price of LTC peaked at $7.54 on July 10 and then dropped to $4.40 on the day of the event. A similar pattern was observed during the 2019 cycle. On June 23, Litecoin soared to $142 and then corrected to $93. The downtrend after the halving continued for several months, and only after that, the asset entered another rally in January 2020.
Read also: Cardano Price Hits $0.30: Is It Worth Buying ADA Right Now?
If the historical trend repeats, there is still room for LTC to rise to $120. However, the $110 resistance is a major problem. As you can see in the chart below, 200,000 addresses bought 2.09 million coins at an average price of $109.56.
Source: IntoTheBlock
However, the bears have every chance to seize control and bring down the price below $100 immediately after the halving. However, they will first have to deal with the backing of 85,000 wallets that purchased 331,000 Litecoins at $103. In case of a successful breakdown of this level, the asset may sink to $92.
What are your predictions for the price of Litecoin following the upcoming halving event? Let us know in the comments.