Bitcoin’s little brother, commonly known as Litecoin, has exhibited bullishness since mid-November, resulting in a confident climb from around $48 to a local peak of $83.66.
However, Litecoin’s price action has somewhat been overshadowed by the ongoing FTX fiasco and Sam Bankman-Fried’s interviews of him claiming not to have intentionally collapsed the crypto exchange.
Litecoin Prints a Bull Flag and Golden Cross
A glance at the one-day LTC/USDT chart below, courtesy of Tradingview, reveals that Litecoin has just undergone a bullish golden cross between the 50-day (white) and 200-day (green) moving average.
Furthermore, the digital assets seem to have formed a familiar bull flag (blue) that could send it to higher levels closer to the 200-week (red) moving average around the $100 price level.
But Litecoin’s daily MFI (green), RSI (red) and MACD hint at an ongoing pullback that could result in Litecoin dropping from current levels of $76.79 to the $73.36 support area. Litecoin’s daily trade volume is also reducing, confirming that a pullback is in the pipeline.
Litecoin has a Halving on August 3rd, 2022
Also worth mentioning is that Litcoin has a halving event in approximately 244 days on August 3rd, 2022. The halving will result in Litecoin’s block reward reducing by 50% from 12.5 LTC per block to 6.25 LTC. Just like Bitcoin, the event happens every four years and makes Litecoin a deflationary asset, thus boosting price as the event draws nearer.
Therefore, it is highly likely that Litecoin will experience a slow climb to $100 as a result of the hype surrounding the halving. This is despite the overall bearish environment brought about by the FTX collapse and its ripple effect on the crypto and traditional markets.
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