The Litecoin $95 Question: Is A Bullish Breakout In The Pipeline?
July 31 2023 - 5:30AM
NEWSBTC
Litecoin (LTC) is facing a critical juncture in its price surge,
with its value hovering just above $89.52 on CoinGecko, showcasing
a modest 0.3% increase in the last 24 hours. However, LTC has
endured a slump of 3.6% over the past seven days. As the
price continues to hover below the crucial resistance level of $95,
investors are wondering if the muted performance of Bitcoin (BTC)
will hinder LTC’s upward trajectory. Furthermore, all eyes are on
the upcoming August halving event to determine if it will catalyze
significant price action. Source: Coingecko Understanding Litecoin
Halving In the context of cryptocurrencies like Litecoin, a halving
is a programmed event that occurs when a specific number of blocks
are mined on the blockchain. Litecoin, similar to Bitcoin, has a
fixed supply cap and new coins are introduced into the market
through mining. Related Reading: Traders’ Interest In XRP
Remains Solid Despite Price Retreat, Data Shows Source: Admiral
Markets Approximately every four years, the mining reward for each
block is cut in half, reducing the rate at which new coins enter
circulation. This process is known as “halving” and is intended to
control inflation by gradually limiting the supply of new coins.
LTC’s price surge beyond $95 has encountered significant
resistance, as this level had previously acted as support in early
July. However, as BTC’s performance weakened, the support flipped
to resistance, creating an obstacle to Litecoin’s advancement. The
fate of LTC’s price action remains closely intertwined with
Bitcoin’s performance, as the latter serves as a bellwether for the
broader cryptocurrency market. Impact Of BTC’s Performance Being
the most dominant and influential cryptocurrency, Bitcoin often
dictates the market’s direction. If BTC remains weak, with its
price currently at $29,414 at CoinGecko, Litecoin’s ability to
break past the immediate $95 resistance level could be
hindered. LTC market cap currently at $6.89 billion on the
daily chart: TradingView.com A retest of the 38.2% Fibonacci
retracement level at $88 might be possible in such a scenario. On
the other hand, a solid and decisive move by Bitcoin could have a
positive knock-on effect on Litecoin, propelling it past the
resistance and potentially sparking a more significant price rally.
Related Reading: Shibarium Hype: Shiba Inu Whales Boost Appetite,
Snag 1 Trillion SHIB Tokens As the Litecoin
halving approaches, investors are speculating whether this
event will drive a significant price surge. Historically, halvings
have been associated with bull markets in cryptocurrencies, as the
reduced supply of new coins can create a supply-demand imbalance,
leading to higher prices. However, it’s essential to recognize that
the market’s sentiment, overall health, and broader macroeconomic
factors also play crucial roles in determining price movements.
(This site’s content should not be construed as investment advice.
Investing involves risk. When you invest, your capital is subject
to risk). Featured image from PublishOx
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