litecoin (LTC) price rose today, outperforming the broader crypto market as traders remain bullish on its block reward halving event in August.
Litecoin price hits 14-month high
The price of LTC jumped about 8.3% to $116 on July 2nd, the highest since April 2022. Its weekly gains climbed more than 30%, making it the best week for Litecoin since November 2021.
Traders rushed to buy Litecoin in the weeks leading up to its August 3rd halving. This event will effectively reduce the Litecoin network mining reward per block from 12.5 LTC to 6.25 LTC and theoretically reduce the amount of new supply.
For example, independent market analyst Crypto Tony he believes Litecoin may rise towards $140 before halving. Michael van de Poppe, another analyst, expects the price around the event will reach 200 USD.
Each Litecoin is halved it preceded volatile price growthsuggesting that a similar scenario is possible if history repeats itself.
Launch of EDX Markets, Bitcoin ETF App
In addition to the halving, the price of Litecoin increased due to its listing EDX marketsa new institutional crypto exchange backed by firms including Citadel Securities, Fidelity Digital Assets and Charles Schwab Corp.
further BlackRock’s Bitcoin ETF Filing with the SEC pushing other leading financial institutions to do the same, giving Litecoin and other crypto assets a boost. The price of LTC has jumped over 60% since the announcement on June 15th.
What’s next for the price of LTC?
The latest buying spree in the Litecoin market has left it in an “overbought” state.
Notably, Litecoin’s daily Relative Strength Index (RSI) was above 70 on July 2, increasing the chances of a correction in the coming days. Let’s assume that happens. Then the price of LTC could return 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, a rebound from $100 LTC/USD positions for more upside.
Related: Why Bitcoin ETF Approval Could Release $18B Selling Pressure
Litecoin, supported by strong fundamentals, could therefore rise to $130, which is the resistance level from January to April 2022. This level is also near the upper trendline of the continued upward trajectory of the LTC channel, as shown on the weekly chart below.
This setup puts the LTC bulls on a 20% gain through late July to early August.
This article does not contain investment advice or recommendations. Every investment and trading step involves risk and readers should do their own research when making decisions.