Litecoin (LTC), the cryptocurrency that powers the payments-focused Litecoin blockchain, is consolidating within the $91 space, simply above its 50 and 100-Day Transferring Averages, each of which reside round $89.50.
Litecoin merchants proceed to rely down for the upcoming halving occasion, which is now simply 70 days away.
“When Litecoin first began, 50 litecoins per block got as a reward to miners… (and) after each 840,000 blocks are mined (roughly each 4 years), the block reward halves and can carry on halving till the block reward per block turns into 0 (roughly by 12 months 2142)”.
Proper now, the block reward is 12.5 LTC, which is able to quickly lower to six.25 LTC.
While Litecoin’s prior halvings haven’t essentially been as bullish occasions as halving have been for Bitcoin, a slowing of the LTC inflation charge ought to nonetheless show to be a constructive for LTC within the long-run.
Out of a complete 84 million LTC tokens that may ever exist, slightly below 73 million have been mined, which is round 86.7% of the provision.
Which means the upcoming halving occasion will see LTC’s inflation charge drop from round 3.67% to round 1.8%.
Worth Prediction – The place Subsequent for Litecoin (LTC)?
Litecoin’s technical set-up is trying good for a continuation of quick to medium-term upside.
LTC’s second restoration from beneath its 200DMA this 12 months earlier this month suggests buyers stay eager to purchase the dip and the restoration from earlier month-to-month lows additionally confirmed a long-term uptrend from the November lows.
In the meantime, with Litecoin having additionally managed to get again above its different main transferring averages, a retest of annual highs to the north of $100 per token seems to be on the playing cards.
Litecoin has been capable of shrug off macro headwinds (a rising US greenback and US yields) which have weighed Bitcoin and different cryptocurrencies thus far this month on account of sturdy US information pushing again in opposition to US recession bets and Fed policymakers pushing again in opposition to charge lower expectations.
Time will inform if additional hype relating to the upcoming halving occasions and technical shopping for continues to assist the Litecoin value, however that does appear to be probability, with futures open curiosity within the cryptocurrency just lately hitting its highest degree since late 2021.
Can Litecoin (LTC) Hit $1,000 in 2023?
With cryptocurrency markets seemingly having entered the early phases of a brand new bull market, buyers are excited about what upside value ranges they need to be focusing on for the years forward.
Some Litecoin bulls may be hoping for the cryptocurrency to affix the $1,000 per token or above membership in 2023 – in the intervening time, solely two cryptocurrencies are on this unique membership, Bitcoin and Ether.
Nonetheless, that might require Litecoin to 10x from present ranges within the house of solely round seven and a half months.
That shouldn’t be dominated out as unimaginable.
Between November 2020 and Might 2021, Litecoin posted close to 8x beneficial properties to leap from round $55 to above $410 per token.
However that coincided with a large run-up in broader crypto costs, pushed by zero rates of interest, huge fiscal stimulus and a fast reopening-fuelled financial rebound, in addition to a sudden surge in institutional curiosity into crypto as an asset class.
Whereas it may be strongly argued that the pattern in direction of higher societal and institutional investor adoption of crypto expertise and crypto as an asset class has continued, these different financial circumstances seemingly received’t be in play for 2023.
Sure, the Fed is more likely to pause its rate of interest hikes and will do some charge chopping this 12 months, which means macro ought to now not be the large headwind that it was in 2022 when the Fed was aggressively mountaineering rates of interest to get inflation beneath management.
However Litecoin bulls ought to mood their optimism about hitting $1,000 this 12 months.