January 28, 2023

How will halving affect the rate of Litecoin?

How will halving affect the rate of Litecoin?

On August 5, a halving will occur in the Litecoin cryptocurrency blockchain (LTC) - the reward for adding a block will be halved (from 25 to 12.5 LTC). We analyzed how this event will affect the asset rate, and compiled the most likely scenario.

Now the situation is repeating in the Litecoin market,which preceded halving in 2015. Six months ago, the virtual currency began to rise in price. The price of the coin increased by 552% (to $ 147), then decreased by 49% and now fluctuates in the range of $ 85-95. In 2015, LTC fell in price to halving by 73%, then over the course of several months the value of the asset increased by 35%.

Technical indicators based on data forlast month, they say that the market is at an early stage of a bullish trend. However, the weekly chart indicates a downward trend, which will cause the LTC to fall by 25%. After this correction, Litecoin will trade above 61.8% of the Fibonacci level. This indicator serves as an indicator of a change in the trend to bullish, however, if the downtrend does not run out, we should expect a further decline in the value of the asset.

Employees at Strix Leviathanthe study found that before and after halving, the volatility of the cryptocurrency rate increases slightly. Thus, we can conclude that halving the reward will not have a tangible effect on the value of the coin.

Litecoin price dynamics will be generallycoincide with general trends. Taking into account the data of the weekly chart, we predict a downward trend. Most likely, the asset will decline by 24% in the next two months. In this case, LTC will reach the 2015 figure and 61.8% Fibonacci level. Then consolidation will begin, and by the end of the year the asset will rise in price to $ 100, returning lost positions and even reaching a plus (compared to the current rate).