• Litecoin’s halving event is set to take place in August, with 130 days left until the event.
• Litecoin has been one of the top-performing cryptocurrencies since June 2020, rising by over 130%.
• Historically, cryptocurrencies tend to rise ahead of a halving event as it reduces block rewards to miners and reduces the coin’s supply.
Litecoin Halving Countdown
The countdown for the next Litecoin halving has started with 130 days to go. A halving takes place after every four years and will reduce the current block reward from 12.5 LTC to 6.25 LTC. This important part of proof-of-work (PoW) blockchains like Bitcoin, Dash and Bitcoin Cash helps reduce the coin’s supply even as demand rises, boosting its prices in the process.
Litecoin Price Performance
Since June last year, Litecoin has been one of the top-performing large-cap coins, currently trading at $92.17 which is 40% below its lowest point this year. Litecoin’s hash rate has also been in a strong downward trend lately and stands at 710 TH/s compared to its all-time high of 785 TH/s.
Technical Analysis
Litecoin’s daily chart shows that it’s been in a strong bullish trend in recent months and managed to flip a key level at $84.51 into support while moving above both the 25-day and 50-day exponential moving averages, forming a bullish crossover. The coin also formed what looks like a bullish pennant pattern above an ascending trendline shown in green on the chart.
Historical Data
Cryptocurrencies tend to rise ahead of a halving event as seen with Bitcoin before its last halving event which happened in May 2020 where it jumped sharply before pulling back shortly after that time period ended.
Conclusion
With only 130 days remaining until Litecoin’s halving event takes place investors are repositioning for this important moment which historically tends to boost cryptocurrency prices due to reducing supply while increasing demand for these coins or tokens amidst anticipation of higher prices post halvening events taking place on PoW networks like Bitcoin and Dash among others