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Why is Litecoin worth up right this moment?

Litecoin (LTC) worth is up right this moment, outperforming the broader crypto market as merchants proceed to remain bullish about its block reward halving occasion in August.

Litecoin worth hits 14-month excessive

LTC worth jumped about 8.3% on July 2 to $116, its highest since April 2022. Its week-to-date returns climbed to over 30%, making it the very best week for Litecoin since November 2021.

LTC/USD day by day worth chart. Supply: TradingView

Merchants have flocked to buying Litecoin within the weeks main as much as its halving on Aug. 3. The occasion will successfully cut back Litecoin community’s mining reward per block from 12.5 LTC to six.25 LTC and theoretically cut back the quantity of recent provide. 

For example, impartial market analyst Crypto Tony believes Litecoin can rally towards $140 forward of the halving. Michael van de Poppe, one other analyst, expects the value to achieve $200 across the occasion.

Every Litecoin halving preceded a risky worth rally, suggesting that an analogous state of affairs is feasible if historical past repeats.

EDX Markets launch, Bitcoin ETF purposes 

Along with the halving, Litecoin worth rallied as a consequence of its itemizing on EDX Markets, a brand new institutional crypto alternate backed by companies together with Citadel Securities, Constancy Digital Belongings and Charles Schwab Corp.

Moreover, BlackRock’s Bitcoin ETF submitting with the SEC, which prompted different high monetary establishments to do the identical, has given Litecoin and different crypto belongings a lift. LTC worth has jumped over 60% for the reason that announcement on June 15.

LTC/USD vs. crypto market cap’s day by day chart. Supply: TradingView

What’s subsequent for LTC worth?

The most recent bout of shopping for within the Litecoin market has left it in an “overbought” state.

Notably, Litecoin’s day by day relative energy index (RSI) was above 70 on July 2, elevating probabilities of a correction within the coming days. Suppose it occurs. Then LTC worth might return to $100 as a take a look at of this key help degree. 

LTC/USD day by day worth chart. Supply: TradingView

A decisive shut under $100 opens the door for a take a look at of its 50-day exponential transferring common (50-day EMA; the crimson wave) close to $90. Conversely, a bounce from $100 positions LTC/USD for extra upside. 

Associated: Why approving a Bitcoin ETF may unleash $18B in sell-pressure

Supported by sturdy fundamentals, Litecoin might subsequently rise towards $130, a resistance degree from January-April 2022. This degree can also be close to the higher trendline of LTC’s ongoing ascending channel trajectory, as proven within the weekly chart under.

This setup positions LTC bulls for a 20% acquire by late July-early August. 

LTC/USD weekly worth chart. Supply: TradingView

This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a call.