Litecoin (LTC) Price on the Verge of an Explosive Breakout Ahead Of Halving Event

The post Litecoin (LTC) Price on the Verge of an Explosive Breakout Ahead Of Halving Event appeared first on Coinpedia Fintech News

Renowned crypto trader and analyst, Michael van de Poppe, has shared his insights on Litecoin (LTC) through a Twitter post. Analyzing an LTC chart on TradingView, Poppe noted a significant “sweep of the low” for Litecoin, often referred to as “digital silver” in the cryptocurrency space. To see a potential acceleration in LTC’s price, Poppe suggests that it needs to break through the levels of $98.50 to $99.50.

Anticipating the Upcoming Litecoin Halving Event

Litecoin is approaching a halving event, which occurs every four years similar to Bitcoin. This event, scheduled for August 2nd, will reduce the amount of LTC produced (i.e., miners’ rewards) by half. As a result, the event is called “halving” or “halvening.” Currently, miners receive 12.5 LTC per block, but after the halving, this reward will decrease to 6.25 LTC. Earlier this year, the privacy-focused cryptocurrency DASH also underwent a halving, while Bitcoin is expected to experience one in April or May of the next year.

In theory, a halving can make a cryptocurrency scarcer and more deflationary, potentially leading to price appreciation. During Bitcoin’s halving in the spring of 2020, its price surged to a new all-time high in April 2021, followed by a further jump to the historic peak of $69,000 in October 2021. Given these historical trends, the approaching Litecoin halving raises expectations for a potential price increase.

Rise of Litecoin Holders Ahead of Halving

Litecoin reached its most recent all-time high of $412.96 on May 10, 2021. Currently, LTC is trading approximately 76.39% below that peak, with a price of $97.52 following a 2.79% rise in the past 24 hours, as reported by CoinMarketCap. Recently shared data from Santiment indicates an increasing number of LTC whale addresses as the halving event draws nearer. Over the past five months, 32 new wallets holding 10,000 LTC or more have emerged, contributing to the rise in LTC millionaire addresses.

Additionally, IntoTheBlock data suggests that Litecoin holders exhibit strong confidence in the cryptocurrency, with around 13% of all LTC in circulation remaining unmoved for the past five years. However, as the countdown to Litecoin’s halving continues, market participants eagerly await further developments and monitor the potential impact on LTC’s price.