Litecoin’s Price Surges Today: Unveiling the Driving Factors Behind its Soaring Value

“Litecoin’s Price Skyrockets Today as Traders Embrace Optimism over Impending Halving Event”

Litecoin witnesses a significant surge in its price, outperforming the broader cryptocurrency market, as traders maintain a positive outlook on the upcoming block reward halving scheduled for August.

Litecoin’s price reaches a 14-month high, experiencing an 8.3% jump on July 2nd, peaking at $116, the highest level since April 2022. With a week-to-date return of over 30%, this marks the most impressive week for Litecoin since November 2021.

Investors have been increasingly inclined to acquire Litecoin in the weeks leading up to the halving event on August 3rd. The event entails a reduction in Litecoin network’s mining reward per block from 12.5 LTC to 6.25 LTC, thereby potentially limiting the influx of new supply.

Market analysts such as Crypto Tony predict a rally in Litecoin’s price, possibly reaching $140 prior to the halving, while Michael van de Poppe envisions a price surge to $200 during the event.

Historically, each Litecoin halving has been followed by a period of price volatility, implying the possibility of a similar occurrence if history repeats itself.

Aside from the halving, Litecoin’s price has been bolstered by its listing on EDX Markets, an institutional crypto exchange backed by renowned entities such as Citadel Securities, Fidelity Digital Assets, and Charles Schwab Corp.

Additionally, the filing of BlackRock’s Bitcoin exchange-traded fund (ETF) application with the SEC, which subsequently prompted other major financial institutions to follow suit, has provided a boost to Litecoin and other cryptocurrencies. Since the announcement on June 15, Litecoin’s price has surged by over 60%.

Looking ahead, the recent wave of buying has left Litecoin in an “overbought” state. Notably, the daily relative strength index (RSI) for Litecoin surpassed 70 on July 2nd, indicating the possibility of a correction in the coming days. If this correction occurs, it could lead to a test of the key support level at $100.

A decisive break below $100 could pave the way for a further test of the 50-day exponential moving average (50-day EMA) near $90. Conversely, a rebound from the $100 level positions LTC/USD for further upside potential.

With solid fundamentals backing it, Litecoin could potentially surge towards the resistance level of $130, which was prominent between January and April 2022. This level aligns with the upper trendline of LTC’s ascending channel trajectory depicted in the weekly chart below.

This overall setup provides a promising outlook for Litecoin bulls, projecting a potential gain of 20% by late July or early August.