Why is Litecoin price up today?
Litecoin (LTC) price is up today, outperforming the broader crypto market as traders continue to stay bullish about its block reward halving event in August.Litecoin price hits 14-month highLTC price jumped about 8.3% on July 2 to $116, its highest since April 2022. Its week-to-date returns climbed to over 30%, making it the best week for Litecoin since November 2021.LTC/USD daily price chart. Source: TradingViewTraders have flocked to purchasing Litecoin in the weeks leading up to its halving on Aug. 3. The event will effectively reduce Litecoin network’s mining reward per block from 12.5 LTC to 6.25 LTC and theoretically reduce the amount of new supply. For instance, independent market analyst Crypto Tony believes Litecoin can rally toward $140 ahead of the halving. Michael van de Poppe, another analyst, expects the price to reach $200 around the event.Each Litecoin halving preceded a volatile price rally, suggesting that a similar scenario is possible if history repeats.EDX Markets launch, Bitcoin ETF applications In addition to the halving, Litecoin price rallied due to its listing on EDX Markets, a new institutional crypto exchange backed by firms including Citadel Securities, Fidelity Digital Assets and Charles Schwab Corp.Furthermore, BlackRock’s Bitcoin ETF filing with the SEC, which prompted other top financial institutions to do the same, has given Litecoin and other crypto assets a boost. LTC price has jumped over 60% since the announcement on June 15.LTC/USD vs. crypto market cap’s daily chart. Source: TradingViewWhat’s next for LTC price?The latest bout of buying in the Litecoin market has left it in an “overbought” state.Notably, Litecoin’s daily relative strength index (RSI) was above 70 on July 2, raising chances of a correction in the coming days. Suppose it happens. Then LTC price could return to $100 as a test of this key support level. LTC/USD daily price chart. Source: TradingViewA decisive close below $100 opens the door for a test of its 50-day exponential moving average (50-day EMA; the red wave) near $90. Conversely, a bounce from $100 positions LTC/USD for more upside. Related: Why approving a Bitcoin ETF might unleash $18B in sell-pressureSupported by strong fundamentals, Litecoin could therefore rise toward $130, a resistance level from January-April 2022. This level is also near the upper trendline of LTC’s ongoing ascending channel trajectory, as shown in the weekly chart below.This setup positions LTC bulls for a 20% gain by late July-early August. LTC/USD weekly price chart. Source: TradingViewThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.