Litecoin (LTC) is trending lower like the rest of the cryptocurrency market but one thing that separates the altcoin from the rest is the clear strong case. Unlike the rest of the market, Litecoin looks set for another rally that will likely be pushed forward into the next breakout.
Litecoin Halving Presents Bullish Scenario
Like Bitcoin, Litecoin halving occurs every four years and cuts block rewards by 50%. The goal of this emergence is to reduce the amount of new supply that flows into the market. And as demand increases, there is less supply to meet this demand, thus leading to scarcity and rising prices.
Litecoin’s next halving is just around the corner now with only about three months to go. This emergence, like its predecessors, carries the same promise of a rally for the digital asset. The last half of 2019 saw the price of LTC as low as $62 and then rally to a local peak of $80 in the same month.
LTC halving will happen in August | Source: Nicehash
If this year’s breakout stays true to this trend, then the digital asset should see some upside in the coming months. This could result in LTC clearing the $100 level once again as investors prepare for the next leg-up.
A 20% increase can be achieved at this point, especially with the half expected to happen in early August. So more than likely, buyers will dominate the market in the next two months, leading to an increase in the price of Litecoin.
LTC Outlook For 2023
Currently, the crypto market is looking at muted momentum as investors remain uncertain. For Litecoin, the upcoming halving remains a strong event but the prospects for the months after the halving event do not look good given the historical performances.
Previous performance paint bull case for LTC | Source: LTCUSD on TradingView.com
After each breakout, LTC saw a reversal in sentiment after the initial surge and the subsequent crashes were more violent than the uptrends. For example in 2019, the price of LTC crashed almost 50% in the month of September, one month after the halving was completed. This is because the bull market has begun and the cryptocurrency has fallen back into lockstep with the rest of the market again.
Going by this historical performance, it seems that the best time to take profit is the end of August after the asset rally by almost 30%. The window of opportunity closes in the month of September which has historically been a bearish month for cryptocurrencies.
At the time of writing, LTC is trading at $87.11, up 3.22% in the last day.