Litecoin was one of the earliest spinoffs of Bitcoin which came into existence in October 2011 and since then the coin has stayed pretty identical to Bitcoin. Just like the Bitcoin, Litecoin too would be undergoing the mining reward halving process in August 2019 and every stakeholder needs to be prepared for the event as to what could be the probable consequences. Binance Research explains
Litecoin’s block profitability will be cut in half in the span of 5 minutes
In crypto world, halving is a fixed event when the block rewards cut into half and the profitability from a block is reduced to 50%. For Litecoin, its chain’s block rewards for mining are perpetually reduced by one half every 840,000 blocks. With the way, the current block generation time is set to ~2.5 minutes this event is occurring is scheduled to happen every four years. Litecoin’s current block reward is set at 25 litecoin per block and will subsequently decrease to 12.5 litecoin per block around August 6th (at exactly block 1,680,000)
Litecoin has had just one block halving in August 2015 when the price of the coin increased from around 1.5 USD (3 months before halving) to over 3 USD post-halving, with a peak of 7 USD in mid-July 2015 while the hashrate dropped by roughly 15% around the event, before quickly rebounding in the two weeks following the halving.
Litecoin price revisited the $99.00-100.00 resistance area recently before correcting lower. LTC is trading nicely above the key $82.00 support it is likely to bounce back versus USD and bitcoin.
Litecoin price retreated once again after testing the $99.00-100.00 resistance area.
LTC is currently following a declining channel with resistance at $91.20 on the 2-hours chart.
The price could retest the $84.00 or $82.00 support before a fresh rise towards $100.00
Litecoin Price Analysis (LTC to USD)
This week, there were mostly corrective moves in bitcoin, Ethereum, ripple, litecoin, bitcoin cash and EOS. Earlier, LTC price revisited the all-important $99.00-100.00 resistance area, where sellers emerged and protected an upside break.
Looking at the 2-hours chart of LTC/USD, the pair rallied significantly after it broke the $60.00 resistance area. It even traded past the $80.00 resistance area.
There were sharp gains above the $80.00 level and the 25 simple moving average (2-hours). The price even traded close to the all-important $99.00-100.00 resistance area. Later, there was a downside correction to $78.00 before the price bounced back towards the $99.00 level.
The last swing high was formed at $98.90 before the price started a downside correction. It moved below the $92.00 level and the 50% Fib retracement level of the recent upside from the $78.32 low to $98.90 high.
However, the $84.00 support and the 61.8% Fib retracement level of the recent upside from the $78.32 low to $98.90 high acted as a strong support. At the outset, the price is following a declining channel with resistance at $91.20 on the same chart.
An upside break above the channel and the $92.00 level may open the doors for a fresh increase towards the $100.00 resistance, above which litecoin price could climb towards the $115.00 level.
Alternatively, LTC could decline further towards the $84.00 or even $82.00 support area in the short term before resuming its upside. Litecoin must stay above the $82.00 level to avoid a risk of a downside break towards the $75.00 level.