Litecoin (LTC) price is higher today, outperforming the broader crypto market as traders remain bullish on the block reward halving in August.
Litecoin price hits 14-month high
LTC price rose about 8.3% to $116 on July 2, its highest since April 2022. The week-to-date return rose to over 30%, making it the best week for Litecoin since November 2021.
LTC/USD daily price chart. Source: TradingView
In the weeks leading up to the Aug. 3 halving, traders flocked to buy Litecoin. The event will effectively reduce the Litecoin network’s mining reward per block from 12.5 LTC to 6.25 LTC, theoretically reducing the amount of new supply.
For example, independent market analyst Crypto Tony believes Litecoin can rally to $140 ahead of the halving. Michael van de Poppe, another analyst, expects the price to hit $200 around the event.
Each Litecoin halving was preceded by a volatile price rally, suggesting that a similar scenario is possible if history repeats itself.
Introducing EDX Markets, Bitcoin ETF Applications
In addition to the halving, Litecoin price surged due to its listing on EDX Markets, a new institutional crypto exchange backed by the likes of Citadel Securities, Fidelity Digital Assets, and Charles Schwab Corp. is supported.
Additionally, BlackRock’s Bitcoin ETF filing with the SEC, prompting other top financial institutions to do the same, has given Litecoin and other cryptoassets a boost. LTC price is up over 60% since the announcement on June 15th.
Daily chart of LTC/USD versus crypto market cap. Source: TradingView
What’s next for the LTC price?
The recent buying spree in the Litecoin market has left it in an “overbought” state.
Notably, Litecoin’s daily Relative Strength Index (RSI) was above 70 on July 2nd, raising the possibility of a correction in the coming days. Suppose it happens. Then, LTC price might return to $100 as a test of this key support level.
LTC/USD daily price chart. Source: TradingView
A crucial close below $100 will open the door for a test of its 50-day exponential moving average (50-day EMA; the red wave) near $90. Conversely, a recovery from $100 LTC/USD offers more upside.
Related: Why Bitcoin ETF Approval Could Trigger $18 Billion Selling Pressure
Hence, supported by strong fundamentals, Litecoin could rally towards $130, a resistance level from January to April 2022. This level is also near the upper trendline of the ongoing uptrend of the LTC channel, as illustrated in the weekly chart below.
This setup positions the LTC bulls for a 20% gain by late July/early August.
Weekly LTC/USD price chart. Source: TradingView
This article does not contain any investment advice or recommendations. Any investment and trading venture involves risk, and readers should do their own research when making their decision.
