Litecoin price has been surging for the past few days as investors prepare for the highly anticipated halving event slated later this year in August. Litecoin, the silver to Bitcoin’s gold, has jumped more than 15% in the past four days and 32.56% in the year to date. LTC has a total market cap of $6.78 billion, ranking it the 11th most valued digital asset after Polygon and ahead of Polkadot.
LTC is Rallying
Litecoin price has staged a significant recovery in the past few days, jumping higher to retest its highest level since April 26, 2023. The altcoin has jumped nearly 40% from its lowest level this year but remains more than 12% below its highest level in 2023.
Litecoin has been rallying for the past few days on the back of high Bitcoin transaction fees. Earlier this month, Binance, the largest cryptocurrency exchange, halted the withdrawal of Bitcoin twice in 24 hours due to congestion in the network. This saw transaction fees surge to $30 per transaction, compared to a decline in an index of cryptocurrencies.
The soaring Bitcoin fees also saw the number of transactions in the Litecoin blockchain jump to a record high as most users sought a cheaper alternative. According to Glassnode, the number of transactions per day on the Litecoin blockchain has been soaring. Litecoin was created more than a decade ago as a more transaction-friendly version of Bitcoin, the largest cryptocurrency by market cap.
Litecoin price has also been buoyed by the strong buying pressure from investors as the coin’s third halving event approaches. Halving is an event where the rewards miners receive for securing transactions are reduced to cap the supply of tokens. Block halving takes place every four years on the Litecoin blockchain, and the next one is expected to happen later in July or early August.
Litecoin Price Outlook
Litecoin price signals a bullish dominance ahead of the highly anticipated halving event set to happen in less than 85 days. The asset has managed to move above the 50-day and 200-day exponential moving averages, as highlighted on the daily chart. The Relative Strength Index (RSI) also supports the bullish view at 61, suggesting there is more room for an upward trend before reaching the overbought zone.
Therefore, the Litecoin price is likely to continue moving higher in the ensuing sessions as traders eye a 45% jump to $138, in line with predictions by a prominent crypto trader, Pentoshi. Conversely, we cannot rule out a pullback to the crucial support level at the 50-day EMA at $87.85.