Litecoin price analysis: Will halving boost the price above $100?
The halving of Litecoin (LTC) is expected to happen on 3 August 2023. This event will reduce miner block rewards from 12.5 LTC to 6.25 LTC. Investors expect halving to boost the price of the asset as it increases the scarcity. Litecoin is well-above its June low and the bulls are trying to keep the price above $73 as of 6 January 2023.
Bill Barhydt, CEO of the crypto wealth management platform Abra, tweeted on 3 January that Litecoin was the only “decentralized p2p payment system with 10 years of uninterrupted uptime.”
Litecoin is the only decentralized p2p payment system with 10 years of uninterrupted uptime. (#Bitcoin will get there in 2023.) https://t.co/35ascaN0AE
— Bill Barhydt (@billbarhydt) January 2, 2023
Barhydt added that litecoin was faster than bitcoin in testing new technologies and settings and that helped bitcoin.
Litecoin is important for a few reasons imo…. They test new technologies and system settings faster than Bitcoin… mimble wimble, block timing, different hashing algo…. Etc. This helps Bitcoin imo. In any case it’s still just software. Use it or don’t.
— Bill Barhydt (@billbarhydt) January 2, 2023
Large investors seem to be stocking up on litecoin over the past few days. According to crypto intelligence firm Santiment, the number of litecoin shark and whale addresses soared to a two-year high on 25 December 2022.
???? #Litecoin's price ratio vs. #Bitcoin remains up big since large addresses began popping up at historic rates starting in May. Since June 12th, the $LTC / $BTC price ratio is up +130%. The network just hit the most 1,000+ $LTC addresses in 2 years. ????????https://t.co/ebgP2kw1tQ pic.twitter.com/Jq3AdhAMPO
— Santiment (@santimentfeed) December 27, 2022
Another positive in favour of litecoin is that despite the crypto winter, the network completed more than 39 million transactions in 2022, which is a new record.
Could litecoin go up and hit the $100 mark over the next few days or will traders book profits and start a short-term correction? Read the LTC price analysis to find out.
Litecoin price technical analysis: Weekly chart
Litecoin weekly chart 6 January 2023 – Source: Capital.com
LTC’s price has been sandwiched between the 20-week exponential moving average (EMA) and the 50-week simple moving average (SMA). This indicates a strong tussle between buyers and sellers.
The bulls are buying the dips to the 20-week EMA, but they have not been able to extend the recovery, because the bears are aggressively defending the 50-week SMA. This tight range trading is unlikely to continue for long.
The 20-week EMA has flattened out and the relative strength index (RSI) has risen into positive territory, suggesting that bulls have a slight edge.
If buyers push and sustain the price above the 50-week SMA, the LTC/USD pair could pick up momentum and rally to $100. If this level is also crossed, the next stop could be $133.
This positive view could invalidate in the near term if the price turns down and falls below the 20-week EMA. The pair could then drop to $47.
What is your sentiment on LTC/USD?
Litecoin price technical analysis: Daily chart
Litecoin daily chart 6 January 2023 – Source: Capital.comBoth moving averages are sloping up and the RSI is in positive territory, indicating that bulls have the upper hand. If Litecoin’s price rebounds off the moving averages, the likelihood of a rally to $84 increases.
This is an important resistance to keep an eye on, because a break above it could signal the start of a new up-move. The pair could then rally to the $100 to $106 zone, as there is no major resistance in between.
Conversely, if the price breaks below the moving averages, it will suggest that bears remain active at higher levels. The pair could then drop to $65, and thereafter to $61. Such a move will tilt the advantage in favour of the bears.
Litecoin: Buy or sell this week?
Litecoin has pulled back to the moving averages. If the price rebounds off the current level, it will suggest that traders are buying the dips. That improves the prospect of a rally to $84. This level may act as a resistance, but if bulls overcome it, litecoin’s price analysis suggests a rally to $100. On the downside, a break below the moving averages could indicate that bears are back in the game. The pair could then slide to $61.
The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial adviser before arriving at a decision.
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