Litecoin: A 500%-800% Rally Incoming?

Lavina Daryanani
Source: SoFi

Litecoin, the silver to Bitcoin’s gold, has rallied by 8% over the past day to $82.26. Given the collective bullish sentiment at press time, many from the community feel that LTC could be next in the queue to take off.

This year is quite crucial for LTC because it will be undergoing its third halving event. Like Bitcoin, the block reward for Litecoin miners will also slash by half post-halving. At the moment, 12.5 LTC are issued to miners. That will change to 6.25 LTC later this year.

At the moment there are more than 200 days for the event, and you might wonder why are we discussing it now. Well, Litecoin has behaved in a certain way pre and post-halving. So, in this article, we will focus on the same and present the outlook for this cycle.

Massive Rally Incoming For Litecoin?

A recent Twitter thread by pseudonymous analyst Rekt Capital revealed that in both the halving events in the past, Litecoin’s price bottomed out months before the halving and went on to rally by 820% and 550%.

While the said numbers might seem to be gawk-worthy, it is even more interesting to note that the post-event rallies have had even more thrust. After halving 1, the asset rallied by 14,200%, while post the second halving, it rallied by 1,574%.

From the bottom to the top, Litecoin’s pre-halving 1 rally lasted ~90 days. Similarly, the LTC pre-halving 2 rally lasted twice the number of days [~180].

“It looks like LTC Pre-Halving rallies may be lengthening in time. If this upcoming LTC Pre-Halving rally lasts twice as long as the previous PH rally, then this rally will last ~365 days.”

Considering Mid 2022’s $40 low as the bottom for this Litecoin cycle, the asset can be expected to peak around May-June this year. In fact, that seems to be in line with the larger picture.

Rekt Capital noted that LTC “tends to top out just before the halving.” The analyst revealed that it peaked 31 days pre-halving 1. Similarly, it topped 61 days post halving two. Following the arithmetic progression, the analyst hinted that LTC could perhaps top “92 days pre-halving in May” this year.

The crypto market has evolved with time. Market conditions have changed with every cycle and so have the macro factors. Looking into the past surely gives cues about what to expect from the future. However, the same cannot be 100% relied upon. As usual, DYOR before investing.