As long as speculators and miners continue to accumulate at the current prices, the Litecoin (LTC) market will continue to see strong trading volume. Notably, Litecoin miners have become more active on-chain as talk of a potential halving has taken centre stage.
Additionally, as evidenced by the large trading volume in comparison to other cryptocurrencies of comparable calibre, cryptocurrency asset dealers have been speculating on Litecoin pricing. The 24-hour traded volume for Litecoin was around $461,897,500, and its open interest has more than tripled year to far, per the most recent cryptocurrency market data.
Litecoin Price Analysis
The price of LTC is on its way to $120 thanks to the halving FOMO pump, according to a famous crypto analyst known as Captain Faibik. Some cryptocurrency dealers claim that the Litecoin halving, which is scheduled less than two weeks from the time of publication, has already been factored into the price. Captain Faibik predicts that the third-largest PoW-secured digital asset will reach new highs in 2023 as a result of a significant breakout.
Tweet Source - https://twitter.com/CryptoFaibik/status/1682314280530747392
Notably, the weekly price movement of LTC/USD demonstrates that Litecoin is still constrained by a macro-falling trendline. Similar to that, the loss on the Litecoin/Bitcoin weekly chart has decreased since 2017, suggesting a potential reversal. The Litecoin market, according to some observers, won't take off until 12 to 18 months after the August halving event, lead by Benjamin Cowen.
Features of the Litecoin Halving Event
Scarce and Deflationary Nature
In theory, a halving can make a cryptocurrency scarcer and more deflationary, potentially leading to price appreciation. Bitcoin's halving in spring 2020 resulted in its price surging to a new all-time high in April 2021, followed by a further jump to the historic peak of $69,000 in October 2021. Considering these historical trends, the upcoming Litecoin halving event raises expectations for a potential price increase.
Rise of Litecoin Holders Ahead of Halving
Litecoin reached its most recent all-time high of $412.96 on May 10, 2021. Presently, LTC is trading approximately 76.39% below that peak, with a price of $97.52 following a 2.79% rise in the past 24 hours, as reported by CoinMarketCap. Recent data from Santiment reveals an increasing number of LTC whale addresses as the halving event draws nearer. Over the past five months, 32 new wallets holding 10,000 LTC or more have emerged, contributing to the rise in LTC millionaire addresses.
Conclusion
As the countdown to Litecoin's halving continues, market participants eagerly await further developments and monitor the potential impact and litecoin price prediction after halving event. With the rise in Litecoin holders and the anticipation of reduced mining rewards, the stage is set for an explosive breakout in the near future.
P_S_trade analyst noted on Trading View about litecoin predictions that it may hit $173 by the end of the year as it attempts to break free of a macro-falling trendline. P_S_trade does, however, also draw attention to the potential for a second attempt at the resistance line, this time acting as a support level, prior to the halving event.