One of the main events of 2023, but when will the Litecoin halving take place? What kind of impact can it have on the price?
“Halving” means a reduction by half. In cryptocurrencies that are mined, such as Bitcoin, Bitcoin Cash, Litecoin, etc., it refers to the halving of the block reward that miners receive for each block they validate, which occurs at regular intervals.
What are the advantages of halving?
Halving is the intentional reduction of the mining reward in cryptocurrencies at regular intervals. There are two main reasons for this process.
- Halving is the intentional reduction of the mining reward in cryptocurrency mining at regular intervals. There are two main reasons for this process. The first reason is to reward users who have had faith in the cryptocurrency from the beginning. Users who have faith in the cryptocurrency mined through mining and have been mining in this area since its inception will have received much more block rewards than miners who joined later and were more affected by the halving process.
- The mining process is not only necessary for cryptocurrency production, but also for validating transfers made on the blockchain system, thus forming the backbone of the network. Limiting the number of cryptocurrency units that can be produced is crucial, as continuing with the initial block reward figures would result in the production of the entire cryptocurrency supply. In such a scenario, miners would cease to participate in the blockchain network, as there would be no reward for their efforts, leading to a potential clog in the system. To keep miners in the blockchain network for an extended period and sustain the production of the cryptocurrency, the block reward must decrease as the number of miners increases.
It technically broke the $94-$95 resistance level with significant volume. It tested this area several times, indicating the willingness of the price to move upward. If it gives a retest to the blue box, I will take a chance. The first resistance level I have identified is around $102.5. If we also gain these levels, we may see a move towards $115 and $132 levels.
Although the analyses shared here are not investment advice, these support and resistance levels can provide short to medium-term trading opportunities in the market. It is the user’s responsibility to manage their own trades and risks. It is strongly recommended to use stop-loss orders in the trades shared.