Litecoin halving countdown closes in, not long now before LTC potentially spike

• Litecoin halving event is due on August 4, just under two weeks from now, with investors monitoring the countdown.
• The event will drop mining rewards by 50%, from 12.5 to 6.25 LTC per block.
• As the supply of LTC tokens entering the market drops, analysts predict the propulsion of Litecoin price to $98.71.

Litecoin (LTC)  price is on a downtrend, extending the losses that began in early July as the countdown to the LTC halving continues. As it is a significant event in the Litecoin ecosystem and the crypto playing field,  investors are watching closely for the event’s impact on the asset’s price.

Litecoin price falls despite upcoming LTC halving

Litecoin (LTC) price is down almost 5% in the last day despite a 56% increase in its 24-hour trading volume. The interest in the asset comes as the countdown to the Litecoin halving continues, with only days left to the event.

Litecoin Halving Countdown 

Litecoin halving defines an event where rewards to miners will be cut in half. The process goes back to around eight years ago when the first halving of this crypto happened. It takes place every four years, as indicated in the schedule below.

Litecoin Halving Schedule

Based on the sequence, Litecoin halving dates are determined by mining every 840,000 blocks. This means the dates could vary based on mining completion.  Accordingly, the next one is expected to be in eight days, despite the August 4 schedule. On the halving day,  rewards will reduce from 12.5 to 6.25 LTC tokens per block.

Litecoin price expectations around LTC halving

Litecoin halving leads to a 50% drop in the supply of new LTC tokens coming into the market. Based on supply-demand dynamics, a decrease in supply leads to increased prices as scarcity increases. This holds provided demand remains constant.

Nevertheless, owing to the overly volatile nature characteristic of crypto, there are instances when a halving event fails to drive up the asset’s price or, if it does, falls short of investor expectations. Regardless of the outcome, the broader outlook in the crypto market hugely influences the overall trend that follows a halving event at that time. The same cannot be said for Bitcoin (BTC) price, which tends to react positively to its halving events. This is heavily attributed to its notable influence on the broader crypto market.

As crypto players conform to the buy the rumor and sell the news narrative, investors could start stockpiling their LTC tokens ahead of the halving. This is before offloading them to the market just before the event day. The buying pressure tends to fuel a rise in Litecoin price, but investors should brace for a sell-off before the actual day.

At the time of writing, Litecoin price is $88.84, after dropping almost 5% in the last 24 hours. The Bitcoin fork is attempting a bounce after testing the $87.02 multi-month support level. A strong move above this base could see LTC break above the downtrend line and possibly tag the $98.71 resistance level. Such a move would constitute a 10% climb from the current base.

LTC/USDT 12-hour chart

Conversely, if Litecoin price yields to the broader bearishness in the market, steered by the BTC dominance after Bitcoin price broke a critical support level, LTC could head lower. A decisive flip of the $87.02 support level to resistance would increase the odds of a prolonged slump, possibly into the $80.00 range.

In the dire case, Litecoin price could descend to the support floor at $76.15 before a sustained pullback. Notably, with both the Relative Strength Index (RSI) and Awesome Oscillators (AO) pointing south, momentum among LTC bulls seems to be fading. Hopefully, the sentiment will shift as the halving event window approaches.