Litecoin (LTC), one of the stalwarts of the cryptocurrency world, finds itself between two substantial supply walls as it braces for the upcoming halving event, according to chart analyst Ali.

Ali [@ali_charts] pointed out on Twitter that Litecoin’s current trading range is bounded by two significant supply zones. On the lower end, the support stands between $87 and $90, underpinned by 625,000 addresses that have purchased a total of 7.8 million LTC. Conversely, a resistance zone exists between $90 and $93, where approximately 590,000 addresses hold 6 million LTC.

This tight trading band puts Litecoin in a precarious position as market participants prepare for the forthcoming halving event. Halving, a routine occurrence in cryptocurrencies like Litecoin and Bitcoin, is a process where the mining reward for new blocks is cut by 50%, effectively decreasing the rate of coin creation. These events typically occur at regular intervals; for Bitcoin, it’s approximately every four years.

The halving mechanism is primarily designed to curb inflation and promote scarcity within the cryptocurrency’s ecosystem. The impact of halving on price, however, is complex and often a subject of intense debate among traders and analysts.

For the uninitiated, trading around halving events can be daunting due to the inherent volatility and unpredictability of the crypto market. Yet, there are commonly employed strategies to navigate such situations:

Historically, the price action of Litecoin around halving events has been far from straightforward. It usually embarks on a volatile ascent roughly 100 days prior to the halving, forming a local peak about 50 days before the event. However, the immediate price response to the halving events has been mixed.

Following both previous halvings, Litecoin saw substantial gains: up 14,200% after the first and 1,574% after the second. However, it is crucial to note that these gains were coupled with sharp corrections in the following months, with declines of 73% and 83% observed respectively.

As of late July 2023, a single Litecoin is hovering around $89. The impending halving has sparked much speculation about Litecoin’s potential price trends, and traders will be keeping a keen eye on the aforementioned supply walls and how the coin reacts as the event nears.

Right now, it’s best to short LTC and wait for the historical pullback. Then, enter at support levels around $75 and try to ride the probable wave up to $300.

The post Litecoin Gained 1500% After Last Halving – Here’s How To Trade the Impending One appeared first on CaptainAltcoin.

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