a relief rally by most cryptocurrency A welcome Wednesday after a dull week. Whether the gains will be sustainable or not, only time will tell. However, Litecoin (LTC/USD) gains were more promising, setting the coin among those that could end the year in the green.
Litecoin saw a surge in social interest in the cryptocurrency with a 27% gain on Wednesday. In the past week, LTC has added 35%, which is driving it towards higher prices. The latest performance comes amid positive expectations surrounding the supply dynamics of LTC.
The gains in LTC come about eight months ahead of its third halving event, which is expected in July 2023. But what is it exactly?
The mining reward halving, or simply the halving event, occurs every four years on the Litecoin blockchain. During the event, a programmed code halved the rewards or payouts to the miners. In the next event, the reward will be reduced from 12.5 LTC per block to 6.25 LTC. This has the effect of reducing the inflation of LTC.
If history were to repeat itself, LTC price would behave similar to the 2015 and 2019 halving events. This is the time when the cryptocurrency broke out to recover sharply from a prolonged downtrend months before the event.
While the pre-halving rally may be a bit speculative, the sentiment data reinforces the increased buying of LTC. Whales have earned over $42.4 million in LTC over the past two weeks. This comes after earlier this month, MoneyGram launched a service for trading and holding cryptocurrency assets. Acceptable digital assets were Litecoin, Bitcoin and Ethereum.
LTC hits May high under bullish pressure
On the daily chart, LTC is in a clear bullish momentum after pushing above the $64 resistance. The resistance has been crucial, preventing bulls from taking LTC higher since May. An RSI of 71 means that LTC can be slightly overbought.
Should you buy LTC?
A break above $64 welcomes a bullish short and medium term run. However, with more buyers conditions, the investor would be better off buying on a retracement towards $64. next capability ltc price Target is at $95.
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