Litecoin consolidating ahead August 5 halving event

Litecoin was among the best performing cryptocurrencies in June to the extent that it tested the levels slightly above $150. Unfortunately, the high volatility levels across the market had the $7.4 billion crypto diving back to levels close to $100. A recovery has since occurred touching $140 to the upside but the price has retraced to levels between $117 support limit and $122 resistance limit.

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At the time of writing, Litecoin is trading at $119 and is slightly below the ranging 50 Simple Moving Average. The prevailing technical picture is neither negative nor is it positive. Technical indicators like the Relative Strength Index (RSI) and the Moving Average Convergence Divergence are moving horizontally at 51.42 and 0.0 (mean line) respectively. Further correction north must clear the resistance by the 100 Exponential Moving Average (EMA) and the 100 Simple Moving Average (SMA).

LTC/USD 1-h chart

The halving event for Litecoin is coming up in just 28 days according to Litecoinblockhalf. Litecoin website details that the previous having took place on August 25, 2015, at block 840,000. However, this year’s will come 20 days earlier on August 5 at block 1,680,000 following increased network hash rate. Historically Litecoin halving has resulted in a significant increase in the price.

“Comparatively speaking, if history is anything to go by, we should have already seen an unhealthy vertical spike in price as people FOMO in to capitalize on the event, yet this hasn’t happened.”