Litecoin (LTC) has been on a remarkable run in the past three days, emerging as one of the most impressive performers among cryptocurrencies this week. But what’s causing this sudden surge in its price?
The answer lies in the anticipation of a major event that’s just around the corner: the impending halving of Litecoin, set to take place on August 2. Similar to Bitcoin, Litecoin undergoes halvings after a specific number of blocks are mined, roughly every four years.
As the halving approaches, investors and enthusiasts are left wondering: will Litecoin’s price continue to soar, or is there more to this story than meets the eye?
LTC trading at $112.35. Source: Coingecko
Litecoin Price Rally And Resistance Breakthrough
LTC has demonstrated a strong performance in recent days, currently trading at $112.35 according to CoinGecko. Over the past 24 hours, LTC experienced a notable rally of 5.1%, and within a seven-day timeframe, it surged by an astonishing 29.0%.
Over the weekend, LTC managed to surpass the crucial $100 mark, and since then, it has sustained trading above this key level of resistance. This resilience indicates bullish tendencies and raises the possibility of a significant breakthrough, with the potential for the $100 resistance to transform into support.
Such a development could pave the way for a sustained bull run, potentially propelling the token to reach $130 in the near future.
Social Activity Volume And Halving Event Hype
The surge in LTC’s price has coincided with heightened social activity volume, as observed by the blockchain analytics firm Santiment.
This suggests a correlation between price spikes and increased interest and engagement surrounding the crypto.
LTC market cap nears the $8 billion level. Chart: TradingView.com
The anticipation of Litecoin’s upcoming halving event has generated a surge in demand for the asset, driving its price upward.
⚡ #Litecoin is under 5 weeks away from its #halving, taking place on August 3rd. Prices have suddenly soared for $LTC, blasting off for a +26% in just over a day. Watch for mainstream #FOMO, as this usually foreshadows local tops until crowds calm down. https://t.co/KljBpjVy3C pic.twitter.com/7kDqEpyZjz
— Santiment (@santimentfeed) July 1, 2023
Litecoin’s halving events have historically been associated with significant price movements. In the months leading up to previous halvings, Litecoin experienced notable price surges.
These halvings have been pivotal moments for the crypto asset, often triggering a period of increased market activity and bullish sentiment.
The underlying principle behind the price surge observed before halving events is the anticipation of reduced supply coupled with sustained or growing demand.
As the number of new coins entering the market decreases, if demand remains steady or increases, the scarcity of Litecoin can drive up its price.
This scarcity narrative has been a driving force behind the previous bull runs experienced by Litecoin, and the upcoming halving event is expected to generate similar dynamics.
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Featured image from Master The Crypto