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- The Litecoin halving 2023 is expected to take place this week, in tandem with its mining difficulty adjustment.
- Some crypto experts believe Litecoin halving 2023 has already been priced in and the value could drop in subsequent months.
The cryptocurrency market closed last month in a bearish outlook and opened August 2023 in a similar manner with Bitcoin price dropping below $29k on Tuesday. However, the third Litecoin halving is expected to take place this week, when the block reward will be reduced from 12.5 LTC to 6.25 LTC.
The long-awaited Litecoin halving event has historically triggered increased volatility amid high traded volume. With Litecoin price up only 15 percent YTD, to trade around $90.6 on Tuesday, a faction of crypto experts believes LTC value could rally to a new high this year after the halving.
Moreover, Litecoin’s price only surpassed its prior ATH by less than 10 percent during the 2021 crypto bull market following its 2019 halving event. Additionally, Litecoin’s price has consolidated in a macro wedge pattern, which has given long-term investors a chance to buy low. Furthermore, Litecoin’s mining hash rate has increased exponentially in the past year to about 800 TH/s, with its difficulty standing around 25.64 M.
According to on-chain data, Litecoin’s transactions have continued to scale from more than 9.7 million holders to about 172,161,987. Litecoin investors understand about 11 million coins remain to be mined to a total supply of around 84 million.
Santiment Data Shows Increased Demand on Litecoin Pre-halving
According to the market intelligence platform, Santiment, Litecoin’s mid-tier holders have been loading up their bags in preparation for the post-having effects. Notably, Litecoin’s accounts with between 100 to 10k coins loaded up more than 205k coins in the past two weeks. As a result, Litecoin’s whales and Dolphins have accumulated over 18 million Litecoins, according to Santiment. The aggressive accumulation has happened in the mid-tier LTC holders despite the price consolidation in the daily and weekly time frames.
As the demand from Litecoin’s long-term holders increased, the asset flipped Polygon (MATIC), and Polkadot (DOT) in daily traded volume and market capitalization. If the increase in on-chain momentum continues in the coming days, Litecoin’s market could easily flip TRON (TRX) and Solana (SOL) to re-enter the top ten most valuable digital assets by valuation.
Price Action
Litecoin’s (LTC) price has consolidated between $90 and $95 since the asset dropped from this year’s ATH of around $113. The four-hour LTC/USD time frame, however, shows the bulls could soon take over and push the price to a new ATH. Moreover, a possible head and shoulder (H&S) pattern has been forming on the four-hour time frame backed by a rising divergence of the RSI, thus signaling an incoming price reversal.
However, renowned crypto analyst Benjamin Cowan has warned traders to have their hopes low on Litecoin as it has historically dropped after its halving event and only risen 12-18 months later.
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