Halving is a phenomenon that is designed in the cryptocurrency algorithm, which reduces the rate of supply of the asset. Bitcoin will have a total amount of 21 million by the year 2142. Nevertheless, more than 17.7 million coins have already been mined, i.e., 84.3% of the total supply.
Litecoin has a similar protocol; the mining rewards for Litecoin is reduced every four years as well. Similar to Bitcoins, 73.7% of the Litecoin [LTC] has already been mined. However, the total supply of Litecoin is four times that bitcoin.
Litecoin [LTC] halving will occur on 7th August 2019. The prices of digital silver are expected to witness massive volatility in Q2 and Q3 of 2019.
History of Litecoin Price halving
During the previous halving event in 2015, the price, volatility in cryptocurrencies was massive. The rise in Litecoin [LTC] was more than five times before the month of the halving event in 2015. However, the market characteristics were different than they are now.
Nevertheless, the charts indicate that Litecoin has risen about 65 times from $1.5 to $98 from May 2015 to May 2019.
Litecoin [LTC] has tripled its value since the beginning of the year. The yearly high and low of Litecoin price is $106 and $30 respectively. It is currently, testing the higher resistance level on the yearly. The price of Litecoin [LTC] at 14: 00 hours UTC on 22nd May is $100.
Since the mining is fairly profitable now and the number of Litecoins is four times greater than Bitcoin [BTC], not much adverse effect is expected on the supply of the coin post halving.
According to the ascending triangle pattern, we can see an upside between $125 to $150. Moreover, the market sentiments are bullish towards cryptocurrencies, especially Bitcoin [BTC]. The MACD has, however, reached an inflection point, hence reversal is on the cards as well. The RSI on the daily is in the neutral zone at 60.
On the weekly, the MACD is diverging, signaling the continuation of bullish momentum. However, the RSI is moving towards the over-bought region. The price is trading above the moving averages a well, which is bullish. While the Technical analysis points towards uncertainty, market indicators and fundaments are expected to lead the market.
A strong correlation has also been witnessed between Bitcoin and altcoin prices. Bitcoin [BTC] price movements will be closely watched by the Litecoin traders as well.
Do you think bull run on Litecoin [LTC] is on the horizon or Bitcoin [BTC] will drive the prices? Please share your analysis with us.
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com