The Litecoin currency has risen dramatically in recent months. In mid-June 2022, LTC/USD reached lows of around $40. The price is currently testing the $100 mark. The value of Litecoin increased by a significant 150 percent in eight months. Why is LTC trending so strong and the rally is still going? Kryptoszene.de uses current data to analyze where the Litecoin course could move forward. Also, see the latest forecasts from analysts.
That’s why the price of Litecoin is rising so much
Litecoin’s sharp rise can be attributed to two main reasons. On the one hand, the crypto currency naturally benefits from the general recovery in prices on the crypto market. 2023 got off to a very supportive start with January being the strongest month since the bull market of 2021. However, Litecoin has outpaced the growth of Bitcoin, Ethereum and other top coins by market cap in recent months, in some cases significantly.
Bitcoin is “only” up nearly 50 percent from its low of around $15,500, while the price of Litecoin has risen threefold. This is due to the upcoming Litecoin half-life this year. While the BTC reward halving for miners is not expected until 2024, the Litecoin halving is already planned for August 2023.
Litecoin buyers are currently taking advantage of both factors and enjoying strong price increases in recent months. Even when the Litecoin price was still in the $60 range, kryptoszene.de drew attention to Litecoin’s special potential this year.
Can Litecoin Explode Above $200?
However, Litecoin’s pre-half boom still seems to have some room for improvement. At least if you compare the growth and development before the last halving in August 2019. At that time, LTC was able to record a growth of 560 percent from a low of about 22 dollars to the halving at the top. If you take this rally as a benchmark, Litecoin could rise much higher in the coming months and explode well above $200 if the course is the same as in 2019. If this scenario happens, buying Litecoin would be at the current time still a profitable investment for the coming months.
However, there is no guarantee that history will repeat itself. And if you look more closely at the price developments of 2022/2023 and 2018/2019, clear differences are already visible. Litecoin, for example, needed about 235 days for the current rally of 150 percent. Before the 2019 Halving, Litecoin managed this 150 percent pump in about 80 days so only about a third of today’s time was needed.
People are starting to be wary of the Litecoin halving… Watch that spike in popularity before the last one in 2019 pic.twitter.com/Ao6cspKkbM
— Vitamin (@LtcBtc) February 4, 2023
Litecoin rally different than 2019
In addition, the rally then started much later than today so it was much more parabolic. Only eight months passed between the bottom of the 2018 bear market and the half event. On the other hand, Litecoin started to rise more than 1 year before the event half this time and it is rising much slower than it was back.
In this context, market analysts would say that the current expansion appears to be “healthier” and therefore potentially more sustainable. But how far Litecoin can still rise before the halving will become clear in the coming months. What is interesting is that the halfway point of 2019 did not mark the peak of the rally. LTC peaked around $145 just 1.5 months before the halving and fell down more than 30 percent to around $100 by the time the halving took place. If you also draw a parallel here, Litecoin could already reach its pre-halving peak at the end of June 2024 and then enter a correction.
However, that doesn’t mean you need to sell your LTC at this point. Because history shows that Bitcoin’s half-life, which always happens in the year after Litecoin’s half-life, has another strong impact on the whole market and thus on the LTC trend as well. Litecoin first saw a 70 percent correction after the half of 2019, but then began another close with growth of more than 1,500 percent during Bitcoin’s half-life.
Are you selling the news in half?
In line with history, Litecoin could first see a significant selloff after the halving in August 2023, which could continue for many months until the Bitcoin halving stage in 2024. According to analysts, not the real bull market will only start in 2024 if Bitcoin continues to behave cyclically, as it has in the past in half.
This is important for you to know, especially for new investors on the market who may be thinking of buying Litecoin at the halving event. Typically, such events are news selling events and are accompanied by large sales. The course is completely opposite to what inexperienced investors would actually expect with the half event, which is related as bullish. Therefore, experienced investors advise new buyers of cryptocurrencies especially not to invest a lot of money in one dropped out for fear of missing out (FOMO), but to look for good entry times and instead buy regularly according to the principle of dollar cost averaging.
Litecoin Forecast: Analysts see the price rising to $225
What can be expected from the Litecoin course in the short term? Looking at the daily chart, analysis shows that LTC/USD broke out of a symmetrical triangle to the upside in January. However, LTC is still far from the technical price target of around $192 and could see another rally of around 90 percent. However, there is also the risk that if the price of Litecoin corrects, it will again test the support of the formation, which is currently around $75. The breakout of the pattern occurred relatively early. If it is just a fake, Litecoin could stay in the formation until August 2023 – when the halving is done.
Digital Coin Price’s 2023 price forecast estimates that LTC can even explode to just under $220 this year. The Coin Price Forecast also mentions a comparable annual target of $225. Financial blog changelly.com sees the price rising to around 150 dollars at most this year. On the other hand, Wallet Investor expects prices to fall slightly during the year.
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