Litecoin ($LTC) Could Rally to New All-Time High Next Year, Data Suggests

Data on the historical price of Litecoin ($LTC) suggests that the price of Litecoin could spike for many months after its haling event, which is scheduled to take place in 2023. As a result, the price of Litecoin could reach a new all-time high the following year. However, the value of the coin can experience a drop immediately after the halving takes place.

According to data analysed by the well-known cryptocurrency analyst Rekt Capital, Litecoin “tends to rally quite strongly prior to its halving.” This is demonstrated by the cryptocurrency’s rise of 820% after bottoming out 122 days in advance of its first-ever halving, as well as its rise of 550% after bottoming out 243 days in advance of its second halving.

Throughout its history, the coin experienced greater gains after its halving event. With the first halving, the price of LTC skyrocketed 12,400%; following the second halving, the price increased 1,573%.

The coinbase reward that is given to miners that locate blocks on the Litecoin network is halved during halving events, much as it is during halving events for Bitcoin. Mining incentives for Litecoin will be cut in half from their current level of 12.5 LTC to 6.25 LTC when the next halving event takes place, which is anticipated to take place in August 2023. Because they cut the amount of new supply coming onto the market in half, halving events are considered to be bullish.

Rekt Capital issued a warning that even though the price of Litecoin rises in the days leading up to halvings, it “sharply and deeply retraces immediately after the halving.” This is because the price of Litecoin fell by 73% in the 578 days that followed the first halving event, and it fell by 83% in the 458 days that followed the second halving event.

According to his statements, the price of LTC has a propensity to “peak out right before the halves,” as the cryptocurrency reached a high point 31 days before the first halving and 61 days before the second halving. The current pre-halving spike in LTC may cause it to encounter significant resistance in the region of $120 per coin, according to the analyst.

After the re-halving rise, LTC has a tendency to strongly retrace, and by the time the correction is over, it develops a new accumulation range. This information was provided by Rekt Capital. After the recent rise, it is anticipated that the price of the cryptocurrency would fall by well over 70%.

According to the analyst, in order for Litecoin to break into its post-halving rally, the cryptocurrency has historically consolidated for 458 to 578 days before a breakout. This indicates that it could take LTC a year to break out of its consolidation if the consolidation time decreases by a quarter after every halving.

Because of this, the analyst predicts that Litecoin will have a breakout in July 2024, which indicates that its new all-time high will be reached some time during that year.

After more than two weeks of accumulation by huge addresses holding between 1,000 and 100,000 LTC, the price of Litecoin increased, exceeding the market as it did so. This occurred toward the end of 2017. At the time of this writing, one Litecoin can be purchased for close to $82 USD.

It is essential to emphasise that the impact of halving events on the price of a cryptocurrency is not a foregone conclusion, and that analyst opinions on the subject differ significantly. The historical performance of a cryptocurrency is not necessarily indicative of its performance in the future.