In approximately 179 days, Litecoin (LTC) will undergo a block-reward halving — cutting the coin reward for miners from 25 to 12.5 coins. With fundamental developments like confidential transactions reportedly in the works and the popular altcoin experiencing price-strength confirmation, how high will the impending halving hype push the price of the peer-to-peer cryptocurrency?
[Disclaimer: The following article is not financial advice and should not be construed as such. Consult with a trained financial advisor before making any investment decisions. The author holds Litecoin (LTC) and Bitcoin (BTC).]
If you’re not accumulating Litecoin (LTC) right now, you might want to consider adding the altcoin to your portfolio.
On August 8, 2019, Litecoin will undergo a block-reward halving, which will reward miners with half of the current reward for successfully validating blocks.
The Bitcoin (BTC) block-reward halving typically garners all of the spotlights — and rightfully so. Such an event has historically impacted the price of the market-leading cryptocurrency in a positive fashion. Many experts are predicting that the next Bitcoin halving on May 24, 2020, will likewise trigger or spur on the next major bull run. With more people aware of this fact than ever before, it stands to reason that hype will build around Litecoin’s earlier block reward halving as we progress through the year.
Litecoin (LTC) Daily Chart
Litecoin has successfully burst out of the 200-week simple moving average in astounding fashion following the announcement that confidential transactions are in the works for the so-called ‘silver to Bitcoin’s gold.’
With such a dramatic spike in volume and convincing push above the crucial moving average, it is within reason that Litecoin has officially entered a new bull market.
That said, Bitcoin and the rest of the cryptocurrency market are still firmly in the control of the bears — so assuming that Litecoin is officially out of the woods may not be particularly wise.
Litecoin (LTC) Monthly Chart
The monthly chart for Litecoin against Bitcoin paints an interesting picture leading up to the halving in August.
The 50-month moving average on Bitfinex is providing resistance at this very moment. A break above this monthly moving average is entirely possible — in which case, it would be nice to see it provide support in the coming months.
The stochastic relative strength index (RSI) is just starting to come out of oversold territory against the first and foremost cryptocurrency. It is clearly heading upwards and is showing clear signs of bullishness.
Of course, one should never FOMO (fear of missing out) into a cryptocurrency. Nothing ever goes straight up or straight down. However, we may be in the buy-the-dip territory now with Litecoin’s fundamental developments and August halving still months away.
What do you think of the price of Litecoin (LTC) in the months leading up to the August block reward halving? Let us know your thoughts in the comments below!
Images courtesy of Shutterstock, CoinMarketCap, TradingView.