How the Litecoin (LTC) rate will behave in anticipation of the August halving

Litecoin (LTC) is bullish on the weekly chart. This may cause the price to rise in anticipation of the third halving in August In August 2023, the third halving will take place in the Litecoin network. As in the case of bitcoin, halving is embedded in the code of the coin and is its integral characteristic.. In a sense, it determines the monetary policy of Litecoin. The next halving is expected to occur at block 2,520,000, tentatively on August 4th.. As a result, the amount of reward for a mined new block will be reduced from 12.5 to 6.25 LTC. What happened to the Litecoin rate during previous halvings The first two LTC halvings took place in August 2015 and 2019 (red icons). In both cases, this event was preceded by a significant increase in prices. In 2015, 203 days before the halving, the price of the coin increased by 312%. However, after it, Litecoin dropped significantly and entered a consolidation phase, which lasted until the next bull run.. Before the second halving, the LTC price also rose by 312%, but this time the coin took 245 days. The decline after the halving was even sharper, but during the subsequent bull run, the price rose to new highs. Thus, the first two halvings have something in common. Litecoin rose in anticipation of this event, and then fell. Source: TradingView How LTC is doing ahead of the third halving According to technical analysis, LTC peaked at $413.50 in May 2021, after which it declined, moving below the descending resistance line. As a result, in June 2022, the coin sank to a minimum of $40.30. However, soon after that, the price began to grow from these values and in October 2022 broke through the descending resistance line. Shortly thereafter, the RSI also made a bullish break of its descending resistance line and advanced above the 50 mark.. Both of these signals are signs of a bullish trend. If the uptrend continues, the immediate resistance area will come into play at $130. Such an increase would be in line with historical trends before the halving. We previously discussed whether Litecoin could rise to $130 in the coming months. Source: TradingView However, the daily chart shows that the LTC price is now in the area of the resistance line of the ascending parallel channel. Such channels are often associated with corrective movements. As a consequence, the market should break out of this channel in a northerly direction.. Only then can growth be expected.. Such a scenario is highly probable given that the daily RSI has made a bullish breakout of the bearish divergence trendline. Meanwhile, price's failure to make such a breakout could lead to a retest of the $70 channel midline, and possibly a fall towards the $55 support line. Source: TradingView Thus, before the two previous halvings, the LTC rate strengthened significantly, but then fell sharply. The weekly timeframe suggests that this time the price is also showing a similar trend. Earlier, the editors of BeInCrypto collected in one review the opinions of members of the crypto community on how BTC might behave in the near future, and also shared a technical forecast for bitcoin. Disclaimer All information contained on our website is published on the principles of good faith and objectivity, and for informational purposes only.. The reader is solely responsible for any actions taken by him on the basis of information received on our website.