- Litecoin is one of the best performing cryptocurrencies this year.
- A sustainable move above $100 will trigger strong upside movement.
Litecoin doubled its value since the beginning of the year and became one of the best-performing cryptocurrencies out of top-20. The upside momentum was driven mostly by the expectations of the upcoming halving that may happen as soon as in August 2019. While the recent week was less successful for LTC – the coin has lost over 10% of its value, the situation is about to change rapidly, once the price overcomes the critical resistance located at $100.00. Once it happens, Litecoin will jump towards $160.00 with 38.2% Fibo retracement of the significant downside move from December 2017 high located on approach.
What is halving?
Halving means that the remuneration received my Litecoin miners for processing and confirming transactions will be reduced by 50%, from 25 LTC to 12.5 LTC. As halvings are supposed to decrease inflation of the proof-of-work cryptocurrencies, they usually serve as a robust bullish catalyst. Investors expect a comparable price increase and tend to buy the coin ahead of the event.
Litecoin’s technical picture
LTC/USD is changing hands at $86.65, off the recent lows registered at $85.26. At this stage, an upside momentum fades away on approach to psychological $100, followed by 23.6% Fibo retracement at $108.00. Once this area is cleared, the upside is likely to gain traction with the next focus on the above-said 38.2% Fibo retracement ($158.00) and $160.00.
On the downside, the initial support is created by DMA50 at $82. A sustainable move below this handle will open up the way towards the next bearish aim of $68.00 (DMA100) and critical $60.00.
LTC/USD, 1-day chart