Litecoin (LTC) price rose today, outperforming the broader cryptocurrency market, as traders continued to remain optimistic about its block reward halving event in August.
Litecoin hits 14-month high
On July 2, the price of LTC rose about 8.3% to $116, the highest level since April 2022. Its week-to-date returns climbed above 30%, making it Litecoin’s best week since November 2021.
Traders have been piling into Litecoin in the weeks leading up to the August 3 halving. The event will effectively reduce the mining reward per block on the Litecoin network from 12.5 LTC to 6.25 LTC, theoretically reducing the amount of newly added supply.
For example, independent market analyst Crypto Tony believe Litecoin may rise to $140 before the halving. Another analyst, Michael van de Poppe expect The price hit $200 before and after the event.
Every Litecoin halving has been preceded by price volatility, suggesting something similar could happen if history repeats itself.
EDX Markets Launches, Bitcoin ETF App
In addition to the halving, Litecoin prices also rallied due to its listing on EDX Markets, a new institutional cryptocurrency exchange backed by firms including Citadel Securities, Fidelity Digital Assets and Charles Schwab.
Additionally, BlackRock’s SEC filing for a bitcoin ETF prompted other top financial institutions to do the same, giving litecoin and other crypto assets a boost. Since the announcement on June 15, the LTC price has risen by more than 60%.
What’s next for LTC price?
The latest round of buying in the Litecoin market has left it in an “overbought” condition.
Notably, Litecoin’s daily relative strength index (RSI) was above 70 on July 2, raising the odds of a pullback in the coming days. Assuming it happened. Then LTC price may return to $100 to test this critical support level.
A decisive close below $100 opened the door for a test of the 50-day exponential moving average (50-day SMA; red waves) near $90. Instead, on a bounce off $100, position LTC/USD for more upside.
Related: Why Bitcoin ETF Approval Could Unleash $18B of Selling Pressure
On the back of strong fundamentals, Litecoin could rise to $130, which is the January-April 2022 resistance. This level is also close to the upper trendline of LTC’s continuing ascending channel trajectory, as seen in the weekly chart below.
This setup puts LTC bulls on track for a 20% gain in late July to early August.
This article does not contain investment advice or advice. Every investment and transaction involves risk, and readers should do their own research when making a decision.
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