Litecoin’s value hit its highest stage in over a 12 months on Monday.
The world’s fourth largest cryptocurrency as per market capitalization rose to $128.07 at 12:00 UTC on Coinbase – the very best stage since Could 23, 2018 – and was final seen buying and selling at $126, representing a 10 p.c acquire on a 24-hour foundation.
Notably, the latest value motion suggests LTC is main the broader market increased. The cryptocurrency is presently up greater than 30 p.c from the low of $97 seen on June 4.
In the meantime, bitcoin, the world’s main cryptocurrency by market worth has gained simply 7 p.c throughout the identical timeframe.
LTC’s outperformance may very well be related to the mining reward halving due in lower than 60 days. On Aug. 8, the reward for mining on litecoin’s blockchain can be halved from 25 cash to 12.5 cash per block.
The cryptocurrency rallied greater than 500 p.c in three months earlier than the earlier reward halving, which happened on Aug. 25, 2015.
The value elevated from round $1.5 in Could 2015 to hit a excessive of $7.00 in July 2015 earlier than falling again to $3.00 post-halving, in accordance with historical data.
If historical past is a information, LTC continues to rise over the subsequent 4 weeks earlier than witnessing a bout of revenue taking forward of the Aug. 6 occasion.
It’s value noting that litecoin’s non-price metrics are additionally witnessing strong development. For example, the hash fee has hit a brand new lifetime excessive of over 400 trillion hashes per second right this moment, in accordance with bitinfocharts.com.
Every day chart
LTC continues to chart bullish increased lows and better highs with the foremost shifting averages aligned in favor of the bulls – the 50-day MA is positioned above the 100-day MA, which is holding above the 200-day MA. All three averages are trending north, indicating a bullish setup.
Additional, the relative power index (RSI) is breaking increased from the consolidation, signaling a continuation of the rally from the worth low of $66 seen on the finish of April.
Extra importantly, the indicator is effectively wanting the excessive of 86.00 seen within the first week of Could, that means there may be loads of room for value rally within the weeks main as much as the reward halving.
All-in-all, LTC appears set to check the psychological resistance of $150 within the short-term. The rally to $150, nevertheless, might not occur if BTC tanks, dragging the broader market decrease.
Nonetheless, even in that case, LTC’s BTC-denominated change fee might do effectively. LTC/BTC is presently buying and selling at 15,910 sats, the very best stage since April 15, in accordance with Binance information.
Disclosure: The creator holds no cryptocurrency belongings on the time of writing.
Litecoin picture through Shutterstock; charts by Trading View
Disclosure Learn Extra
The chief in blockchain information, CoinDesk is a media outlet that strives for the very best journalistic requirements and abides by a strict set of editorial policies. CoinDesk is an impartial working subsidiary of Digital Forex Group, which invests in cryptocurrencies and blockchain startups.
