Less is written about the rate of litecoin than about bitcoin. That is actually a shame, because the litecoin course is also exciting to follow. Especially since the litecoin block halving is coming.
What is the litecoin block halving anyway? Miners receive a reward in the form of newly created litecoins for mining transactions. This reward is halved every 840,000 transaction blocks. This also means that litecoin is less likely to come onto the market. The reward will be halved from 25 litecoin to 12.5 litecoin. This can also have consequences for the exchange rate: less litecoin is offered.
What can we expect from the litecoin rate? Is the price going to rise even further or can we expect a fall?
Rise: course bounces up on important support
In our price analysis of last week, we wrote that the price of litecoin is at an important point. The value of litecoin seems to bounce up again on a historical support.
You can see that clearly on the graph below. The green rectangle indicates the zone in which litecoin found support in the first half of 2018. It is a fairly broad zone, from 90 euros to 100 euros.
In June 2018, litecoin fell due to support. From then on things went fast: the value of litecoin dropped in half a year. At the beginning of December, litecoin was worth a little less than twenty euros.
Now the price of litecoin seems to find support again, as the value bounces up again in this zone. Is this a precursor to a further rise?
Down: a decrease prior to the previous block halving
If we look at the previous block halving, the price of litecoin may still fall.
In 2015, litecoin achieved its highest value 47 days before the block halving. Litecoin was then worth nine dollars. The value then dropped considerably: one day before the halving, litecoin was only worth 2.40 dollars. That is a decrease of more than 73 percent.
The highest value of litecoin has now been reached 44 days before the block halving. Will litecoin fall again by 73 percent? Then we can expect a price of 39 dollars (34.60 euros).
What do you think the price of litecoin will do before the halving? Let us know in the comments!