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The crypto world eagerly awaits as Litecoin's third halving event approaches. Expected for August 2, 2023, this event will occur once the 2,520,000th block is mined.
What is the halving?
A “halving” in the crypto context refers to the moment when the reward miners receive for validating transactions on the blockchain is cut by half. This means that miners will earn half the number of new coins for each block they mine, which, in the past, has significantly impacted the cryptocurrency's value.
The event has historically triggered significant movements in Litecoin's value, often preceding similar movements in Bitcoin. This has led some to speculate that Litecoin's performance could be a precursor to Bitcoin's future movements.
Litecoin's halving occurs approximately every 840,000 blocks, which takes around four years. Since its inception in 2011, Litecoin has already experienced two halvings. During these events, the rewards given to miners are reduced, which has led to an increase in Litecoin's value.
Historical data from previous halvings in various cryptocurrencies may serve as a basis for this expectation. However, sceptics argue that market participants are already aware of the halving event and have factored it into their price calculations and strategies. In this view, the halving’s effects may have been “priced in” ahead of time, meaning that any potential price impact has already been reflected in the current market value.
As we approach the third halving event, it’s reasonable to expect increased market attention and potential price volatility. Holders and potential investors will be keeping a close eye on Litecoin as it approaches and then passes the halving.
Will the halving push Litecoin higher this time?
Many Litecoin holders will hope that this next halving will help to provide the spark that pulls LItecoin out of its current range bound price action. Right now, it appears that Litecoin has in fact managed to turn an incredibly important resistance at $91 into support. Sitting just above the 50 and 200 day moving averages should also provide a reliable cushion. A lift off for Litecoin from here could take it to the next strong resistance at $140.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.