Litecoin LTC’s attempt to break above the descending resistance level has failed. The price is currently trading at $87. As the third halving approaches, LTC deviates from its previous patterns, leaving traders skeptical. What will happen next?
Litecoin price lacks momentum before halving
Despite briefly surpassing the $100 psychological level last year, Litecoin struggled to maintain its bullish momentum. It is currently hovering around $87. Previous halving events have typically been accompanied by price rallies. But now this comes as a surprise.
On August 2, Litecoin will experience its third halving. It will reduce block rewards from 12.5 to 6.25. This significant change happens every four years. By affecting supply, it potentially affects price. When the past halvings are examined, a pattern emerges. Analyzing the previous halving events, it is seen that the Litecoin price tended to experience a fluctuating rise about 100 days before the event. However, it creates a local top 50 days ago, leading to a pullback of recent gains. Surprisingly, the third halving deviates from this pattern as the Litecoin price remains stagnant with only 36 days left.
Challenges for LTC bulls
Litecoin price faced difficulties, failing to break the psychological level of $100. LTC has been struggling to gain upward momentum, hitting three lower lows since Feb 16. However, there were nine-day closes above $100 in the last 416 days. Accordingly, this indicates the importance of $100 as a critical hurdle.
Currently trading at $87.52, just above the $85.56 support level, Litecoin’s price is facing resistance. The Relative Strength Index (RSI) above the average 50 level indicates a potential bounce from the support level, which could trigger a rally. A breach of $85.56 and $100 will pave the way for a retest of the $140 resistance level.
Potential risks to Litecoin price
The bullish thesis for Litecoin LTC price will be invalidated if the $85.56 support level is breached. In such a scenario, a potential collapse of 8% would lead to a retest of the next support level at $78.98.
cryptocoin.com When we look at it as a whole, Litecoin price is having a hard time gaining momentum before the third halving event. Despite historical patterns, the current divergence adds uncertainty among traders. Traders remain cautious as the price of Litecoin hovers at $87. He is also waiting for a catalyst to trigger a significant rally or further decline.
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