Why Litecoin’s 2023 halving may not repeat its historical rally

  • Litecoin’s halving would occur later in the year, but there was no clear sign that it would repeat the rally of previous cycles.
  • Long-term LTC investors might be waiting for the fallout from the event before selling for a profit.

After experiencing two halving events in 2015 and 2019, respectively, Litecoin [LTC] it would go through its third halving event in August 2023. The famous event, which occurs every four years, will end with a 50% halving on newly minted Litecoins.

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Historically, the event has been one to offer investors a breath of fresh air. With this year fast approaching, holders would expect LTC to replicate its usual subsequent performance. But could this year produce a similar result, considering the turbulent market conditions?

A repeat of the two-time champion’s performance?

LTC itself hadn’t done badly. In the last quarter of the previous year, it was one of the best performing cryptocurrencies. Over the past week, it has built on that legacy with a 7.25% rise.

In the lead up to the previous halving, LTC bottomed out and then rose in price. In 2025, the coin rallied 820% before the event, while 2019 saw a 550% rally under similar circumstances.

Previous cycles also saw LTC lose value considerably immediately after the halving and then performed wonderfully. With more than 200 days to go, the technical outlook showed that there was less chance of a repeat of the events leading up to the halving.

Indications from the exponential moving average (EMA) revealed that the medium-term outlook for LTC might not be a buyer’s market. This was because the 50 EMA (blue) rose above the 200 EMA (yellow). Such situations usually end with a consolation or price drop. However, that does not completely neutralize the projection of the greens.

However, in the short term, LTC could continue to hold bullish ground. This was because the Awesome Oscillator (AO) was way above equilibrium. Also, the AO presented a bullish twin peak which could be enough to keep LTC in the bullish momentum.

Source: TradingView

LTC Holders Stand Firm in Faith

However, there were calls from analysts who were of the opinion that Litecoin could not escape the pre-halving and post-halving. Renowned cryptocurrency trader and analyst Rekt Capital also shared the same views via his Twitter page on January 8. However, he noted that there would be cases of compression and volatility before the event.

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meanwhile while grayscale Bitcoin [GBTC] I was busy with a few challengesas their Litecoin Trust had an impressive start to the new year. At press time, the value of LTC was $82.08.

On the other hand, data from holyday It showed that the 90-day idle circulation dropped to 7,237. This meant that a large number of long-term holders had not moved their LTC in the last three months. The resolution could also imply a commitment to wait until the outcome of the halving.

Idle Litecoin Circulation and LTC Price

Source: Feeling

According to the Litecoin Halving Website, the event is scheduled to take place on August 3, 2023, at exactly 9:59:24 UTC, subject to change. This halving will also produce 6.25 LTC as a reward for miners. At the time of publication, Litecoin hash rate was 631.56 TH/s, and it is expected to increase as the halving approaches.

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