Litecoin price has been in a steep freefall since the start of July after ending the previous month at a multi-month high. The altcoin has crashed by more than 17% over the past five days but remains 36.78% higher in the year to date. LTC’s total market cap has slipped by nearly 8% over the past 24 hours to $7 billion, with the total volume of the asset traded over the same period dipping by more than 6%.
What’s Driving LTC?
Litecoin price has been in the red for the past few days ahead of its fast-approaching halving event slated for August. The crypto market has been in jitters for the past few days as investors digest the Fed’s meeting minutes for June. The minutes signaled the likelihood of another interest rate hike this month. Traders are pricing in an 88% chance of a 25-basis point hike in the US Federal Reserve’s meeting for July.
The global crypto market cap has crashed by more than 3% over the last day to $1.17 trillion, while the total crypto market volume increased by 6%. A look at the Crypto Greed and Fear Index indicates a decline in confidence among investors. The Index has dipped from a Greed level of 63 to a neutral level of 59 amid macroeconomic concerns.
Despite its downfall, excitement by investors around the halving event has prevented the altcoin from falling further. With this event just around the corner, whales have already started making their moves, driving interest in the crypto asset higher. As such, the LTC price has jumped by 13% in the past week.
The Litecoin halving event is set to take place on August 02, 2023. The first LTC halving event took place in 2015 and the last halving event happened in 2019. This event approximately happens every four years or after the mining of 840,000 blocks, where the block reward is reduced by half.
By halving the block reward, Litecoin aims to maintain a controlled and limited supply of its tokens over time. This approach is based on the belief that with the scarcity in supply, there will be an increase in demand, thus driving the LTC price higher. According to most crypto experts, the Litecoin price usually doubles just before a halving event. Investors expect the LTC price to skyrocket by more than 300% after the event.
Litecoin Price Analysis
Litecoin price has slipped from its multi-month high of $115 over the past week ahead of its halving event. Even so, the altcoin has remained above the 50-day and 200-day exponential moving averages, while its Relative Strength Index (RSI) moved slightly lower, below the signal line.
As such, there is a likelihood that the Litecoin price will continue to move higher in the medium term as the highly anticipated halving event approaches. If this happens, the immediate resistance level to watch will be this year’s high of $115. However, a move below the crucial support level of $93.30 will invalidate the bullish thesis.
The post Litecoin Price Analysis Amid Countdown to the Halving Event appeared first on Global Coin Report.