Something interesting happens to Litecoin price 50 days before halving

Litecoin price has briefly traded above the $100 psychological level in the last year or so. The lack of bullish momentum has kept it grounded, currently trading at $87, weeks before a halving event that has typically been preceded by a price rally. 

Litecoin’s third halving and what to expect

Litecoin will undergo the third halving on August 2, when its block rewards will be slashed in half, from 12.5 to 6.25. This change in its software happens once every four years, or roughly 840,000 blocks later.

For more information on halving read this: Can Litecoin price hit $100 with LTC halving in less than six weeks?

Taking a closer look at the returns of Litecoin price before and after the last two halving events, one can notice a pattern.

As seen in the chart below, Litecoin price starts its volatile ascent roughly 100 days before the halving. This rally forms a local top 50 days before the halving event and continues to undo the recently acquired gain. 

While the last two halving events followed a similar hype cycle and yielded more than 200% returns, the third halving seems to have a completely different behavior. This time around, Litecoin price continued to remain lull even as there are only about 36 days left for the third halving. 

Litecoin price in days leading up to the halving event

LTC bulls struggle but still persist 

Litecoin price has set up three lower highs since February 16 and has failed to move higher. LTC has produced nine daily candlestick closes above the $100 psychological level in the last 416 days, which goes to show that this level is a critical hurdle.

Litecoin price trades at $87.52, which is just above the $85.56 support level. Since the Relative Strength Index (RSI) is also above the mean level at 50, a bounce from the aforementioned foothold could be key in kickstarting a rally for LTC.

After surpassing the $85.56 support level, Litecoin price needs to overcome the $100 psychological level. Clearing these two blockades will open the path for LTC to retest the $140 resistance level.

LTC/USDT 1-day chart

On the other hand, a breakdown of the $85.56 support level will invalidate the bullish thesis for Litecoin price. In such a case, LTC could crash nearly 8% and retest the next foothold at $78.98.