Litecoin (LTC), like all digital assets in the crypto-verse, has been adversely affected by the major selling events of 2022.
To begin with, the crypto markets started to experience a pullback in late November after Bitcoin hit an all-time high of $69k. Secondly, the collapse of LUNA and UST in May accelerated the selling. Thirdly, the collapse of FTX in November was the final nail that sent the crypto markets to their lowest point in 2022.
Litecoin Could Retest $100 in 2023 as Halving Approaches
The back-to-back selling events have thus affected Litecoin’s price action despite the digital asset being scheduled for a halving event in early August. At the time of writing, the Litecoin halving is estimated to occur on August 3rd 2023 and will entail LTC’s block reward being halved from 12.5 coins per block to 6.25 LTC.
Historically, halving events, such as that of Litecoin, usually ignite buyers’ interest because the digital asset is bound to become scarcer, with the mining rewards halved by 50%. But the overall bearish environment has prevented Litecoin from thriving.
However, 2023 could provide the opportunity for Litecoin to rally ahead of the halving and possibly retest the $100 psychological level.
The one-day LTC/USDT chart below, courtesy of Tradingview.com, shows that Litecoin remains in bullish territory above the 100-day (yellow) and 200-day (green) moving averages. Furthermore, there is ample time for Litecoin to regain the hype due to the halving in August and gather enough momentum to retest the $100 resistance area that coincides with the 200-week (red) moving average.
