One of the most outstanding cryptocurrencies this week is Litecoin (LTC), which has seen a remarkable increase in its price in the last three days. What are the factors behind this unexpected boost in its value?
One of the main reasons for the recent surge in Litecoin’s price is the upcoming reduction in its block reward, scheduled for August 2. This is a process that happens every four years for Litecoin, as well as for Bitcoin, and it means that the amount of new coins created per block is cut in half. This creates a scarcity effect that boosts the demand and value of the existing coins.
With the halving event looming, many are curious about the future of Litecoin’s value. Is the current rally sustainable, or are there hidden factors that could affect its performance?
LTC has shown a remarkable performance in recent days, trading at $112.35 as per CoinGecko. In the last 24 hours, LTC witnessed a significant rally of 5.1%, and in a week, it soared by an impressive 29.0%.
LTC Rally and Resistance Breakthrough
LTC broke through the important $100 level during the weekend and has maintained its position above this critical resistance ever since. This shows a strong bullish trend and increases the likelihood of a major breakout, possibly turning the $100 resistance into a support level.
This might open up the possibility for a prolonged upward trend, which could push the token to achieve $130 in the near future. As LTC’s price has risen sharply, so has its social activity volume, according to the blockchain analytics firm Santiment. This implies a link between price surges and higher levels of interest and engagement around the crypto.
One factor that has recently boosted Litecoin’s value is the upcoming halving event, which will reduce the supply of new coins. Halving events have a history of influencing Litecoin’s price, as they create more scarcity and demand for the asset.
In the past, Litecoin has seen significant price increases in the months before halving events. These events are important milestones for the crypto asset, as they often spark a wave of market activity and optimism.