There is a 200% price rise expected by July 2023 based on the Litecoin pre-halving fractal

Key points: 

• Litecoin’s price could surge by 200% by July 2023, coinciding with its halving event, which will reduce miner block rewards by 50%.
• Litecoin’s third halving is scheduled to happen sometime in July 2023. Meanwhile, market analysts have pointed out that before the halving, the price of LTC was following the same trajectory as before the 2011 and 2019 events, and is now in a bottoming phase.
• On a weekly basis, both LTC’s RSI and MACD have become extremely oversold, in line with the market bottoms before the previous halving event.

Litecoin’s Momentum indicator is signaling extremely oversold, indicating a potential market bottom is forming.

Litecoin’s price could surge by 200% by July 2023, coinciding with its halving event, which will reduce miner block rewards by 50%.

Has Litecoin bottomed out?

Since its inception in October 2011, Litecoin has undergone two halvings. The first was in August 2015, when the block reward was reduced from 50 LTC to 25 LTC. The second occurred in August 2019, reducing the reward from 25 LTC to 12.5 LTC.

Interestingly, each LTC halving event follows a volatile LTC price cycle, i.e. a massive surge in price, followed by a similarly massive correction, bottoming out and back to a local top.

After the Litecoin halving, Litecoin price pulled back from a local top to form another bottom, and then rebounded sharply to a new all-time high again, as shown in the chart below.

Litecoin’s third halving is scheduled to happen sometime in July 2023. Meanwhile, market analysts have pointed out that before the halving, the price of LTC was following the same trajectory as before the 2011 and 2019 events, and is now in a bottoming phase.

Independent market analyst Scalping Pro added some MACD and RSI momentum indicators to support the bullish outlook. Momentum indicators determine the oversold and overbought conditions of an asset to predict a potential trend reversal.

On a weekly basis, both LTC’s RSI and MACD have become extremely oversold, in line with the market bottoms before the previous halving event. As such, analysts see this as a strong sign of another sharp rise in LTC prices.

#LTC x RSI + MACD (1W) 2/5

Everytime WEEKLY RSI entered the oversold zone with MACD crossover below the zero line

It has marked #Litecoin bottom historically.

Past preformance -
2015 ~ +36246%
2019 ~ +1333%
2022 ~ ??? pic.twitter.com/fRbY4VAkuf

— Mags.eth (@thescalpingpro) November 2, 2022

Will the LTC price reach $180 by July 2023?

If Litecoin truly bottoms out near $40 in June 2022, it could make a new local high.

A Fibonacci retracement chart between Litecoin’s corrective high and low ahead of the halving highlights the possibility of testing the 0.236 and 0.382 Fibonacci lines as its upside targets.

For example, in 2011, Litecoin established a local high near the 0.236 Fibonacci lines at $10 in July, and six months later, it bottomed at $1.31.

In 2019, LTC price made a local high of $340 near the 0.382 Fibonacci lines in June after bouncing from around $21 in December 2018.

In the current scenario, Litecoin’s 0.236 and 0.382 Fibonacci lines coincide around $130 and $180, respectively.

 

These levels could act as potential local highs if Litecoin confirms a bottom at $40. In other words, based on current price levels, prices will increase by 100% to 200% by July 2023.