Litecoin gains more than 8% in the first week of 2023

Price rallied by 8.15% in 7 days.
Leaps to 12th on the market cap list with $693.4 million.
Halving scheduled for this year.

After an annus horribilis, the entire crypto sector lost more than 50%. Litecoin, with no exception, ended the year with a drawdown of more than 50%. This year, however, may be blissful for LTC as the coin saw a strong start in the initial week of 2023. The reason for this anticipation is that the next halving is to take place this year.

Since the supply being restrained like this makes the asset scarcer, such an event may have a bullish effect on the price. Hence, LTC holders expect a rally to build up soon, ahead of the halving scheduled for this August. However, it’s ambiguous whether this would be the force that leads the coin to a proper rally, expected due to halving, or if it’s another temporary rise before the real rally starts.

Pictorial session

The price rally is witnessed, resulting in the formation of an expanding wedge pattern. A bullish crossover (green circle) is witnessed, supporting the price rally. Current price action takes place above all the crucial EMAs. The possibilities of prices reaching about $80 are high as a sharp rising OBV and contained volume hint at a further rally.

The analysis favors the current rise. The CMF slips to the positive zone above the baseline. The MACD registers tall buyer bars and improvement in buyer interest. The RSI escalates to the 60-70 range, exhibiting buying inclination in LTC prices.

The closer window

The closer time frame study suggests the prices rising with a decreasing rate. The CMF holds and hops in the positive zone for the price rally. The MACD records a string of buyer bars and ascending buyer participation. The RSI leaps to the overbought zone and continues to float there. A cumulative study shows a further rally for the halving is yet to occur, and the current rise might be a temporary relief rally.

Conclusion

The price rally due to halving might show glimpses from now, and the current rise might be one of them. The market situations at present are very optimistic as the market has started to recover, and LTC derives benefit out of it. The price level of $78.5 is to be watched for further rise.

Technical levels

Support levels: $61.30 and $55.70

Resistance levels: $80.05 and $84.05

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.