Both of these events are likely to restrict the supply of both cryptocurrencies, leading some speculators to count on the reduced supply for another bull run.
Litecoin block halving is in 56 days! https://t.co/EBWbsIUp47
Here are some stats on mining profitability. After halving, miners are still profitable with electricity under 10¢. Many are paying only 5¢ and therefore should keep mining LTC post-halving. (https://t.co/AcQPEjdNtb) pic.twitter.com/VtA9aAv7FS
— Charlie Lee [LTC⚡] (@SatoshiLite) June 10, 2019
Halving fever seems to have already struck the market. Litecoin prices have risen sharply this year, leaving many top cryptocurrencies in the dust.
The altcoin extended recent gains today, hitting a fresh 2019 high of $138.57 and it keeps growing.
This move has pushed LTC market cap up to $8.62 billion and volume is hovering around record levels at $5.7 billion. The traders and analysts on crypto twitter have been scouring the charts looking for the next direction for Litecoin. Most agree that it will be up but key psychological levels of resistance have formed around the $150 area.
Trader Josh Rager predicts a lot of profit taking at this price level, which is now only $10 away:
All you Litecoin fans must be happy about LTC breaking the current resistance on the daily
$125 has now flipped to support
Wouldn't be surprised if LTC made it's way up to $150 which will be strong resistance on the weekly and psychological take profit area pic.twitter.com/baoTFfyhSn
— Josh Rager ? (@Josh_Rager) June 11, 2019
Some of them even prescribe LTC as an “easy buy”:
It's not every day in $crypto you get a near guaranteed "if I buy this now and sell in a month I will make money" but here we have one.
— The Crypto Dog? (@TheCryptoDog) June 11, 2019
Joe DiPasquale, CEO of BitBull Capital, explained that the $120 resistance level could have prevented Litecoin from rising higher, but now that it has surpassed that price point twice, the bullish impulse is likely to continue.
“With LTC trading around $125, we can expect a steady rise towards $150 with some normal pullbacks along the way.”
Will LTC Flip XRP?
Financial Survivalism, a cryptocurrency analyst, revealed that LTC could peak by doubling its price just a few days before the halvening event, which could allow it to flip over XRP:
$LTCBTC peaked days after $LTC halved in 2015. It proceed to selloff leading up to and following the $BTC halving. I think we will see similar price action in 19-20. If so then #LTCBTC would return to the top of the channel over the next couple months before retesting ~0.011. pic.twitter.com/vXz5KcuE2k
— Financial Survivalism (@Sawcruhteez) June 8, 2019
The halving, which is clearly driving it, is still 54 days away so the big question is how high will LTC go and when will it fall back. Unless bitcoin makes a massive move north within the next two months, Litecoin is likely to retrace at some stage.
However, for the “flippening” to happen XRP will have to remain under the current price levels or suffer a significant drop in market valuation while LTC keeps going up.