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Today, Litecoin is trading in the green between the $89.78 and $90 price levels to consolidate at yesterday’s closing price of $89.73. LTC started the year trading at $70 on January 1, 2023. By January 10, it had risen to $80 as the bulls took control. The cryptocurrency traded at $100.44 on February 1 for the first time in 2023.
However, market volatility has forced the asset to retest its old lows and it is currently trading in the $89-$90 price range. A closer look at the daily chart will reveal its price action and the next possible moves.
Litecoin price on an uptrend
Today, LTC has formed a green candle on the price chart, which is a small recovery from the bearish trend noted on the chart on April 28th. However, today’s price change is not significant, because, despite the increase, it remains a sideways trend.
LTC is trading above its 50-day and 200-day simple moving averages (SMA), short-term and long-term bullish sentiment for the asset. His relative strength index is 48.18 in the neutral zone. The indicator also moves sideways, reflecting a sideways trend on the daily chart.
Litecoin found strong support at $88.25, which prevented the asset’s price from falling further. Other critical support levels are $65.39 and $47.5. Its resistance levels are at $94.35 and $103.42.
LTC on an uptrend l LTCUSDT on Tradingview.com
The $90 price level is the psychological resistance level that Litecoin is testing today. The coin is likely to deviate from the $88.25 resistance level and trade above the $90 price level if bulls prevail. However, in the short term, the sideways trend may continue.
Litecoin Halving Historically Bullish
Litecoin is halving every four years as a fork of the original Bitcoin chain. The Litecoin halving event occurs every 840,000 blocks and will reduce the LTC miner reward from 12.5 LTC to 6.25 LTC.
Blockworks reports that Litecoin historically pumps six months before its halving occurs. LTC peaked at 320% gains around 45 days before each halving and then lost most of that revenue a month after the halving.
NEWS: Litecoin halvings coincide with major price changes — but different from bitcoin.https://t.co/zDyxpS8YkI
— Blockworks (@Blockworks_) April 24, 2023
LTC ended the year after each halving, adding between 80% and 110% over its pre-halving price. Thus, this event seems to contribute to the positive price movement of the asset. While the halving hype usually influences price action, other macroeconomic factors such as inflation and regulation also influence trends.
However, halving always causes volatility and price uncertainty. The goal is to reduce the circulating supply of the token and increase its scarcity. Based on historical data, the halving will happen around August 2023 and could affect Litecoin one way or another.
Featured image from Pixabay and chart from Tradingview