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Litecoin (LTC) Pumps by 30% As It Aims for $100 on Potential Halving FOMO

Cointime Staff· 3 min read

Litecoin has silently been pumping in the markets gaining by 30% in the last 24 hours. LTC looks set to retest $100 as traders factor in its August 2023 halving event.

Bitcoin’s little brother, commonly known as Litecoin (LTC), has been on a bullish trajectory as the rest of the crypto community’s focus is concentrated on the ongoing FTX saga. Data from Coinmarketcap shows that Litecoin has gained an estimated 30% in the last day and 34% in the previous week.

Litecoin Looks Set to Retest $100 in the Ideal Market Environment

Litecoin’s bullishness has resulted in the digital asset being ranked thirteenth in market cap, edging out Shiba Inu (SHIB) and Solana (SOL), as seen in the screenshot below.

The one-day LTC/USDT chart below further confirms Litcoin’s bullishness as the digital asset is trading above the 50-day (red), 100-day (yellow) and 200-day (green) moving averages. In addition, a bullish golden cross is about to happen between the 50-day and 200-day moving averages, which could propel Litecoin towards the 200-week (black) moving average around the $100 price area.

But, Litecoin’s daily MFI (green), MACD and RSI (red) hint at an almost overbought scenario that could lead to short-term consolidation below $80 and a possible pullback to the $73 support level. A worst-case scenario would be for Litecoin to drop the $60 support zone that also coincides with the current position of its crucial moving averages: 50-day, 100-day and 200-day.

Litecoin Has a Halving Event in August 2023

To note is that Litecoin has a halving event estimated to occur on 3rd August 2023. The August 2023 event will result in a 50% reduction of Litecoin’s block reward from 12.5 LTC per block to 6.25 LTC. Like Bitcoin, Litecoin’s halving occurs every four years.

Therefore, it could be loosely concluded that Litecoin’s impressive performance could be attributed to crypto traders factoring in the halving event and anticipating a rush to buy LTC as it will become more deflationary in August 2023.

Litecoin’s Pump Could Signal a Potential Bitcoin Bottom

In addition, veteran crypto traders are aware that sometimes Litecoin’s bullish price action is a precursor to Bitcoin pumping in the crypto markets. Given the current bearish environment in the crypto markets, such a bullish display by Litecoin could mark a potential bottom for Bitcoin.

However, caution is advised going long on either Bitcoin or Litecoin, given the ongoing FTX contagion that keeps roping in other crypto projects by the day.

Crypto traders and investors are also reminded that the above is not meant to be financial advice of any kind. Views expressed herein are those of the author and do not necessarily reflect those of Crypto Saving Expert.

(By John P. Njui)


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