Litecoin (LTC) is currently experiencing a downward trend like the rest of the cryptocurrency market. However, the altcoin stands out due to its bullish case. Unlike other cryptocurrencies, Litecoin appears to be gearing up for another rally, which will likely be driven by the upcoming halving event.
Similar to Bitcoin, Litecoin undergoes halving every four years, which cuts block rewards by 50%. The aim of this halving is to reduce the amount of new supply entering the market. As demand increases, there is less supply to meet it, leading to scarcity and a surge in prices. The next Litecoin halving is only three months away, and it carries the same promise of a rally for the digital asset.
The last halving in 2019 saw LTC’s price hit a low of $62 and then rally to a local peak of $80 in the same month. If this year’s halving follows the same trend, then Litecoin should see some upside in the coming months. This could result in LTC clearing the $100 level once more as investors prepare for the next leg-up. A 20% upside is attainable at this point, especially with the halving expected to happen in early August. Therefore, buyers are likely to dominate the market for the next two months, leading to rising prices for Litecoin.
However, the prospects for the months following the halving event do not look good given historical performances. After each halving, LTC has seen a reversal in sentiment following the initial surge, and the subsequent crashes have been more brutal than the uptrends. For example, in 2019, LTC’s price crashed almost 50% in the month of September, one month after the halving was completed. This was because the bull market was yet to begin, and the cryptocurrency fell back into lockstep with the rest of the market.
Based on this historical performance, it would seem the best time to take profits would be toward the end of August after the asset has rallied around 30%. The window of opportunity closes with the month of September, which has historically been a bearish month for cryptocurrencies.
At the time of writing, LTC is trading at $87.11, up 3.22% in the last day. It is important to note that this information is not investment advice and should not be taken as such. Follow credible sources for market insights and updates.