LTC Bulls Excited About Litecoin Halving, But The Bull Run Might Not Happen Anytime Soon

Key Takeaways:

1. The upcoming Litecoin halving might not have a bullish impact on its prices.
2. LTC price rallied over 38% since March 12.

NEW DELHI (CoinChapter.com) — LTC bulls are eyeing the upcoming Litecoin halving event to book profits. However, historical data suggests a bullish rally might not happen soon.

Litecoin Price Could Drop Hard After August Halving

Halving refers to reducing the mining reward by half, occurring roughly every four years.

However, the halving narrative might have outlived its glamour. Litecoin halving aims to make the LTC token deflationary. With every halving, the percentage of new coins from miners in the overall supply would drop.

As a result, the halving would reduce the impact of miners’ coin liquid supply on the total LTC token supply. A token’s scarcity at a given price relies on its liquid supply. Thus, halving has an impact only if the newly mined coins are a big fraction of the token’s liquid supply.

Basically, with every halving, the percentage of new coins from miners in the overall coin supply is going to drop further and further, having less and less effect on the liquid market supply. This time around, there is likely going to be another big narrative driving the bull market.

Thomas Kralow, a financial markets expert, told CoinChapter.

Historically, LTC price has not immediately responded bullishly to halving. After the halving in Aug 2015, LTC prices crabbed for nearly 580 days before pumping nearly 824% from March 20, 2017’s low of $3.5. The rally helped LTC price form the then ATH.

After the second halving in Aug 2019, LTC price dropped 58% from August 5, 2019’s high of $108.5 over the next 13 months. Afterward, the token rallied 865% to reach its ATH of $417. If LTC holds to the pattern, it might be some time before the Litecoin token rallies upward despite the halving.

Moreover, it seems likely that the token would first rally downward before making any upside movement.

LTC Price Rally Helps Form A Golden Cross

LTC price rallied over 38% since March 12’s low of $68.5. Bulls are buying LTC tokens in anticipation of the upcoming halving event. The uptrend helped LTC’s 20-day EMA (red wave) cross above the token’s 100-day EMA (blue wave) to form a bullish golden cross pattern.

Traders often consider the pattern an indicator of positive market sentiment and a buy signal. As a result, new buyers entering the market could help LTC’s price reach resistance near $96.4.

Furthermore, breaking and consolidating above immediate resistance might help the Litecoin token challenge resistance near $107 before downside corrections pare gains.

On the other hand, if the LTC price fails to sustain the uptrend, the Litecoin token could test support near $89. Moreover, breaching the immediate support level might result in the LTC price dropping to the 200-day EMA (green wave) support near $81.5 before recovering.

Meanwhile, the relative strength index for LTC remains neutral, clocking at 57.82 on the daily charts.