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Key Insights:
- Litecoin (LTC) bucked the broader market trend on Saturday, falling 1.39% to end the day at $107.17.
- Profit-taking off the back of a Friday 28.29% rally left LTC in the red.
- However, the technical indicators are bullish, signaling a return to $120.
Litecoin (LTC) fell by 1.39% on Saturday. Partially reversing a 28.29% breakout from Friday, LTC ended the day at $107.17. Despite the bearish session, LTC avoided sub-$100 for the first time since April 2022.
A bearish start to the day saw LTC fall to an early morning low of $102.95. Steering clear of the First Major Support Level (S1) at $91.5, LTC rose to a mid-morning high of $112.74. However, falling short of the First Major Resistance Level (R1) at $118.7, LTC eased back to sub-$1.05 before ending the day at $107.17.
LTC Returns to the Limelight Ahead of the Litecoin Halving Event
LTC returned to the map on Friday, with a 28% rally sending LTC through the $100 handle for the first time since mid-April 2023.
Investors turned their attention to LTC ahead of the next Litecoin Halving Event set to take place on August 2 at 1701 GMT. The previous having date was August 5, 2019.
Ahead of the second halving event in 2019, LTC surged to a June high of $160.62 before profit-taking led to a pre-halving event pullback. Significantly, Litecoin enjoyed a six-month winning streak to June 2019, rising from a January low of $29.09 to a June high of $160.62.
While the past performance disclaimer may ring true in many instances, crypto halving events have followed a similar pattern. LTC is on a two-month winning streak, with the bulls likely eyeing a return to $150 this month.
News of a marked increase in daily transactions was also LTC-bullish. According to IntoTheBlock, daily transactions on the Litecoin network came within reach of Bitcoin (BTC) daily transactions in May. Daily Litecoin transactions reportedly rose above 500,000 for the first time in the second quarter.
The Bitcoin Halving countdown will also be on the minds of investors. At the time of writing, there are a projected 291 days and 23 hours remaining until the Bitcoin halving event, according to Binance.
The Day Ahead
It is a quiet Sunday session, with US investors likely beginning the Fourth of July celebrations.
With no US economic indicators to distract investors, LTC could see momentum trades support another breakout session after the consolidation on Saturday. However, investors should monitor SEC chatter and regulatory activity, which could stall a Sunday breakout.
LTC Price Action
This morning, LTC was up 2.88% to $110.26. A mixed start to the day saw LTC fall to an early low of $105.18 before rising to a high of $112.82.
LTC Technical Indicators
Looking at the EMAs and the 4-hourly candlestick chart (below), it was bullish signals. LTC sat above the 50-day EMA, currently at $94. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.
A hold above the Major Support Levels and the 50-day EMA ($93.79) would support a breakout from R1 ($112) to target R2 ($117) and $120. However, a fall through S1 ($103) would bring S2 ($98) and the 50-day EMA ($94) into view. A fall through the 50-day EMA would send bearish signals.
Resistance & Support Level
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