Why did the price of Litecoin increase today?

Litecoin (LTC) price rose today, outperforming the broader crypto market as traders remain bullish about its block reward halving event in August.

Litecoin price hits 14-month high

The price of LTC jumped nearly 8.3% on July 2 to $116, the highest since April 2022. Its week-to-date returns exceeded 30%, making it the best week for Litecoin since November 2021.

Traders have been flocking to buy Litecoin in the weeks leading up to its halving on August 3. This event will effectively reduce the mining reward per block of the Litecoin network from 12.5 LTC to 6.25 LTC and theoretically reduce the amount of new supply.

For example, independent market analyst Crypto Tony believes that Litecoin may rise to $140 before the halving. Michael van de Poppe, another analyst, Hope The price will reach $200 around the event.

Each Litecoin halving has been preceded by a volatile price rally, suggesting that a similar scenario is possible if history repeats itself.

EDX Markets Launches Bitcoin ETF Application

In addition to the halving, Litecoin’s price soared due to its listing on EDX Markets, a new institutional crypto exchange backed by companies including Citadel Securities, Fidelity Digital Assets and Charles Schwab Corp.

Furthermore, BlackRock’s bitcoin ETF filing with the SEC, which prompted other top financial institutions to do the same, has given a boost to Litecoin and other crypto assets. The price of LTC has increased by more than 60% since the announcement on June 15.

What’s next for LTC price?

The latest round of buying in the Litecoin market has left it in an “overbought” position.

Notably, the daily Relative Strength Index (RSI) of Litecoin was above 70 on July 2, increasing the chances of a correction in the coming days. Suppose this happens. LTC price could then head back to $100 as a test of this key support level.

A decisive close below $100 opens the door for a test of its 50-day exponential moving average (50-day EMA; red wave) near $90. Conversely, above the $100 position LTC/USD bounced to a higher upside.

Related: Why Approval of a Bitcoin ETF Could Cause $18B of Selling Pressure

Supported by strong fundamentals, Litecoin could rise to the January-April 2022 resistance level of $130. This level is also near the upper trend line of LTC’s ongoing ascending channel trajectory, as shown on the weekly chart below.

This setup puts LTC bulls in a position to make 20% gains through late July-early August.

This article does not constitute investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.