Litecoin is close to breaking upside and rally toward $110 ahead of halving coming up in August.
May 07, 2019 | AtoZ Markets – Litecoin is one of the highest gaining cryptos in 2019. In early April, when it almost hit $100, it gained 60% in less than two days. Since it bottomed at $22 in December 2019, it has gained close to 350%. However, it has retreated from nearly $100 to $69 in a corrective dip that lasted for over three weeks until the end of April. Meanwhile, price is resurging in May with a bounce to $87 and a possible breakout to $110.
In terms of market capitalization, Litecoin is ranked 5th on coinmarketcap with $4.75 billion. Its price movement is very similar to Bitcoin’s though it has performed better so far in the current crypto market recovery. Litecoin was created as a hard fork of Bitcoin – a kind of upgrade. Therefore, the chart patterns of these two cryptos have a strong positive correlation. However, since the April breakout, Bitcoin is making higher prices while Litecoin has largely corrected to the downside though that might change soon. There is this perception that Litecoin often catches up with Bitcoin if the latter is ahead or lags in any direction.
Litecoin halving on the way: will LTC rally?
One of the big fundamentals relating with Litecoin is the ”halving”. Halving is a feature which reduces miners’ rewards by half at a particular block in the blockchain. As mining activities increase, this feature is introduced occasionally to avoid inflation and reduce Litecoin supply which could drive up its demand in the marketplace. This feature is introduced every four years. The block where halving will take place is also known in time. The last halving happened in August 2015. Therefore, the next halving is expected to come up on 8th August 2019.
Litecoin halving is more than 5 months away. A lot could happen before then as price rallies and dips depending on the net market sentiments. This can be analyzed using technical analysis. How far could Litecoin go before the halving?
LTCUSD technical analysis and important price levels
The chart above shows a bullish impulse wave emerging from $22 low on Litecoin chart. A similar price pattern is unfolding on the BTCUSD price chart. The 4th wave seems to have ended at $69 though an extended dip to $50 wouldn’t invalidate this forecast. The chart above suggests the 5th wave has completed its sub-waves 1 and 2 (circled). A break above $87 should lead to the 3rd sub-wave (circled) of wave (v) and that could extend to $106-$115. There is a strong resistance level at $109 that should be noted. At the end of the 5th wave, a 3-wave dip toward $70-$80 is very much likely to follow.