Why is Litecoin price rising today?
Key Takeaways:
LTC technicals signal a 40% uptrend ahead.
The whales have been accumulating since April 2023.
Litecoin halving event coming in August spurred the heightened on-chain activity.
YEREVAN (CoinChapter.com) – Litecoin (LTC), one of the earliest altcoins, gave a choppy performance in May and traded at $95 on June 1 after a 10% daily uptick. There are several reasons to believe the digital asset could enjoy a fruitful month.
Meanwhile, according to technical indicators, LTC could pump another 40% by Q3.
LTC in a symmetrical triangle
Litocoin token formed a technical setup dubbed the “symmetrical triangle.” The latter entails two converging trendlines with a similar slope. They connect swing highs and lows, signifying an accumulation phase before a break. Notably, the triangle does not predict the vector of the said break in advance.
Litecoin (LTC) daily chart featuring a symmetrical triangle. Source: TradingView.com
However, LTC breached the setup’s resistance on June 1. According to the symmetrical triangle’s forecast, a break above the upper trendline could result in a price advance equal to the maximal triangle height. Thus, the target price for LTC would stand at $143, nearly 40% higher than the current value.
The possible closure of the New York session above the said line would solidify the bullish expectations. Meanwhile, several fundamental cues could also push Litecoin on a bullish path.
The number of LTC addresses with a balance reached a record high.
On-chain metrics show a significant uptrend in non-zero Litecoin addresses. According to the analytical platform IntoTheBlock, “total addresses with a balance has increased more intensely since the end of April,” nearing 8.5 million on May 22, an all-time high for the 2011 coin.
The number of Litecoin (LTC) nen-zero addresses is on the rise. Source: intotheblock on Twitter.com
“As a highly-used payment crypto, LTC address count easily exceeds that of other notable assets such as Cardano, Dogecoin, and Polygon,” added the platform. Moreover, according to another on-chain database Santiment, Litecoin whales have been on the move throughout Q2.
Litecoin whale accumulation. Source: Santiment.com
Moreover, the accumulation preceded the Litecoin halving event, or LTC20, scheduled for August 2023, which prompts a bullish continuation for LTC in the upcoming months.
Litecoin halving event is around the corner
Taking place on block 2,140,000, the reward for mining Litecoin will suddenly drop from 12.5 LTC to just 6.25 LTC. Reduced supply and increased demand would make logical sense, based on history.
In detail, just like Bitcoin, Litecoin has a halving event every four years. During a halving, the amount of Litecoin created each time a block is mined is cut in half. It essentially strengthens the incentive to mine as much as possible just prior to the halving by miners.
Additionally, the halving puts more value on each existing LTC coin, as investors are aware of the slower production of each coin moving forward.
According to Santiment, the “crowd discovery” of the event took place in mid-May. The forums and posts began to see increased interest, reminding traders that this event was within three months away. The on-chain transaction volume took off, which could spur price appreciation.
Litecoin transaction volumes on the rise. Source: Santiment.com
Also read: Polygon Partners With Deutsche Telekom, MATIC Price Unimpressed
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Filed under: Bitcoin - @ June 1, 2023 8:28 pm