Historical Litecoin ($LTC) price data suggests that the price of Litecoin could surge months after its haling event, which is set to occur in 2023, to the point it hits a new all-time high next year. The cryptocurrency could, however, endure a correction right after the halving.
According to data analyzed by popular cryptocurrency analyst Rekt Capital, Litecoin “trends to rally quite strongly prior to its halving,” with the cryptocurrency rising 820% after bottoming out 122 days ahead of its first-ever halving, and rising 550% after bottoming 243 ahead of its second halving.
Historically, the cryptocurrency rallied more after its halving event. After its first halving, LTC surged 12,400%, while after its second halving it rose 1,573%.
Much like BTC, Litecoin undergoes halving events, in which the coinbase reward for miners who find blocks on the network is halved. Litecoin’s next halving event is expected to occur in August 2023, and will reduce mining rewards from 12.5 LTC to 6.25 LTC. Halving events are seen as bullish, as new supply on the market is halved through them.
Rekt Capital warned that while Litecoin rallies ahead of these halvings, it “sharply and deeply retraces immediately after the halving,” as it dropped 73% in the 578 days after the first halving event, and retraced 83% in the 458 days after the second halving event.
Per his words, LTC tends to “top out just before the halving,” as it hit a top 31 days ahead of the first halving, and 61 days ahead of the second halving. LTC’s recent pre-halving rally, the analyst said, could see it hit a major resistance area around $120 per coin.
Rekt Capital added that after the re-halving rally, LTC tends to strongly retrace, and by the end of that correction it forms a new accumulation range. The cryptocurrency is expected to retrace by well over 70% after the rally,
To break into its post-halving rally, the analyst said, Litecoin has historically consolidated for 458 to 578 days before a breakout, which means that it could take LTC a year to break out if the consolidation time declines by a quarter after every halving.
As a result, the analyst sees a breakout in July 2024 for Litecoin, meaning its new all-time high would be hit somewhere that year.
Litecoin’s price rallied late last year while outperforming the market after over two weeks of accumulation by large addresses holding between 1,000 and 100,000 LTC. Litecoin is at the time of writing trading near $82 per coin.
It’s important to point out that the effect of halving events on the price of a cryptocurrency is not certain, and opinions on the matter vary among analysts. The past performance of a cryptocurrency does not guarantee future performance.
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- Source: https://www.cryptoglobe.com/latest/2023/01/litecoin-ltc-could-rally-to-new-all-time-high-next-year-data-suggests/