Litecoin (LTC) has been noticed in the industry with a notable increase in on-chain activity. According to recent data from IntoTheBlock, a leading blockchain intelligence platform, the total count of addresses holding a balance in Litecoin has been on a steady rise since the end of April. Last week, it reached a significant milestone with 8.5 million active LTC addresses.
This surge in active addresses is not just a testament to Litecoin’s growing popularity, but it also underscores the expanding interest in cryptocurrency as a whole. The crypto analytics platform, Sentiment, has taken note of this heightened on-chain volume, suggesting that prominent market participants might be strategically positioning themselves in LTC investments, especially with the upcoming halving event on the horizon.
What you'll learn 👉
Price Analysis by altFINS Trading Platform
In the realm of trade setup, there’s a notable bullish breakout from a Symmetrical Triangle, altFINs reports. This pattern is often seen as a strong indicator of a potential resumption of the uptrend. Currently, the market is retesting the breakout level, a common occurrence that can often reinforce the strength of the new trend. If this retest is successful, it could pave the way for Litecoin to reach an upside potential projected to hit the $130 mark, a significant increase that would further solidify the bullish sentiment.
When it comes to trend analysis, the picture is more nuanced. On a short-term basis, the trend appears neutral, suggesting a period of consolidation or sideways movement. However, when we extend our view to the medium and long-term basis, the trend leans towards an uptrend. This indicates that despite short-term fluctuations, the overall trajectory for Litecoin seems to be on the rise, a positive sign for long-term investors.
The momentum, a key factor in determining the strength of a trend, presents a mixed scenario. The MACD Line is currently below the MACD Signal Line, a condition that typically indicates a bearish trend. However, it’s important to note that the RSI (Relative Strength Index) is hovering around the 50 mark, which is considered neutral.
This suggests that the selling and buying pressures are relatively balanced at the moment. Adding to this, the MACD Histogram bars are on the rise, hinting that momentum could be nearing another upswing. This could potentially signal a shift in the market sentiment towards a more bullish stance.
Per altFINs, the nearest Support Zone is at $90, a level that has previously acted as a floor for the price, followed by stronger support at $80. On the other hand, the nearest Resistance Zone is at $105, a level that the price has struggled to surpass, followed by a higher resistance at $115. These levels will be closely watched by traders in the coming days as they could provide valuable insights into Litecoin’s future price movements.
Upcoming Halving Event
Litecoin is set to undergo its third mining reward halving in early August. Post-halving, the per-block reward paid to miners will reduce by 50%, dropping to 6.25 coins from the current 12.5 coins.
This event is expected to reduce the supply of new LTC entering the market, which could potentially lead to an increase in price.
However, the upcoming halving event for Litecoin (LTC) in August 2023 will be the third halving event for the cryptocurrency. Here’s how the price reacted during the previous halving events:
- First halving event: The first halving event for Litecoin occurred on August 25, 2015. The block rewards were reduced from 50 LTC to 25 LTC. Interestingly, the price of Litecoin did not show significant movement immediately after the event. There was minimal price movement observed, and the market appeared quite indifferent to the halving.
- Second halving event: The second halving event took place on August 5, 2019. The block rewards were halved from 25 LTC to 12.5 LTC. Leading up to the event, Litecoin’s price experienced significant growth, going from around $30 in January 2019 to over $120 in June 2019. However, the price seemed to ignore the halving event itself, and there was no major price movement observed immediately after the event.
The recent uptick in Litecoin’s on-chain activity, coupled with the anticipation of the upcoming halving event, paints a promising picture for LTC. The strategic positioning of market participants suggests growing confidence in Litecoin’s potential. As the halving event approaches, the crypto community will be watching closely to see how these developments influence Litecoin’s market performance.
Disclaimer: Cryptocurrency investment carries a high level of risk and may not be suitable for all investors. Before deciding to trade LTC, you should carefully consider your investment objectives, level of experience, and risk appetite.
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