Litecoin halving was anticipated for so long as traders expected it to push LTC price. Sadly, this did not happen and LTC price is on a downward spiral. This move follows the rejection from the price levels slightly above the $100 area (immediately after LTC’s 2019 halving event). Why is history not repeating following this years’ halving event for LTC?
Litecoin (LTC) Price Today – LTC / USD
Litecoin Price Was Expected to Double Post Halving
The miner reward split as a rule in the Litecoin Blockchain code must occur after every four years. Hence, analysts have concluded that, if history is anything to go by, then we should expect the price of Litecoin to double post the halving event.
However, this doesn’t seem to be the case because several weeks after the network’s block reward halving, Litecoin is dumping in value instead of going higher. It is difficult to understand how the dynamics of halving events work. Hence, we have to stick to what we know and follow the coin’s price analysis on the charts.
The Technical Picture of Litecoin Price
From the LTC/USD charts, we can see that there are multiple support positions that have let the bulls down for LTC. Take an example, if the Litecoin price sustained gains over the $100 mark in the early days of August, we would have seen a further breakout to the $120 area. Nevertheless, the retreat by LTC price into the $90 position left the price of the coin extremely vulnerable to dips.
For this reason, most sellers have decided to force Litecoin under the descending pattern. Consequently, the LTC bulls have opted to use their remaining energy to defend the coin’s $70 support area.
Moreover, the dips have begun to push the price of Litecoin near a falling wedge pattern breakout. These falling wedge patterns are typically interpreted as the reversal indicators. This is so whenever they happen during a downtrend such as the one that LTC is in at the moment. Litecoin is struggling to find its place above the $70 mark.
A Breakout over the Wedge Resistance to $100 Will Take LTC above the 50 MA
If there is a breakout above the current wedge resistance, we can expect the coin to launch an upward trajectory. This will ensure that it approaches the $100 price point. This should ensure that the bulls take over once again.
Additionally, the price of LTC is also likely going to find a price boost after it has stepped well above the 50 Moving Average. All the technical indicators have reacted in the bulls favor. Of course, this includes LTC/USD Relative Strength Index which is currently at the 40 position.
This along with the Moving MACD pattern (Average Convergence Divergence) for LTC (which is about to cross into the positive price position) also shows that the scenario will bring back the bulls for LTC.