Why is Litecoin value up as we speak?

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Litecoin (LTC) emerged as one of many best-performing cryptocurrencies on March 23, surpassing its top-ranking rivals Bitcoin (BTC) and Ether (ETH). 

Litecoin attracts Bitcoin and Ethereum buyers

LTC value rallied 5.5% to succeed in an intraday excessive of round $92.50. As compared, the overall crypto market capitalization (TOTAL) has risen 2.25% to $1.14 trillion, with BTC and ETH rising 1.79% and 1.42%, respectively.

The Federal Reserve’s 25 foundation factors (bps) price hike on March 22 seems to be the important thing driver behind Litecoin beating its crypto rivals over the previous 24 hours.

Notably, LTC value rallied over 15% versus BTC and about 14.5% versus ETH for the reason that Fed announcement.

LTC/ETH and LTC/BTC each day value chart. Supply: TradingView

One motive might be that Litecoin has comparatively underperformed the cryptocurrency market in March, dropping over 6.5% month-to-date (MTD) versus the crypto market’s 9.35% beneficial properties.

LTC/USD March value efficiency vs. BTC/USD, ETH/USD, and TOTAL. Supply: TradingView

Therefore, merchants doubtless noticed this as a “purchase the dip” alternative for Litecoin with extra upside potential, significantly as there have been little to no different notable catalysts. 

Whale accumulation forward of Litecoin halving?

In the meantime, on-chain information exhibits an increase within the Litecoin provide held by addresses with a stability between 1 million and 10 million LTC in March. Moreover, the share of provide held by addresses with a stability between 100,000 LTC and 1 million LTC has been dropping.

Litecoin provide held by addresses holding 100,000 LTC to 10 million LTC. Supply: TradingView

This means that the whales holding 10,000-1 million LTC have been accumulating Litecoin in March to enter the 1 million-10 million LTC holders’ cohort.

Litecoin halving euphoria

A halving occasion happens when the rewards for mining new blocks get minimize in half.

Earlier halvings in Bitcoin and Litecoin markets have preceded prolonged bull runs. Due to this fact, the subsequent Litecoin halving, scheduled for August 2023, might additionally produce the same bullish consequence.

Unbiased market analyst Rekt Capital famous that the euphoria across the Litecoin halving could have influenced merchants to purchase LTC within the face of a “market-wide dip.”

What’s subsequent for LTC value?

From a technical perspective, Litecoin appears to be like able to endure a value correction within the coming weeks.

Associated: Ethereum faces 6-month lows versus Bitcoin — Will ETH value rebound?

Notably, LTC/USD is testing its multi-month descending trendline resistance for a possible pullback, much like what transpired in Could and November 2021. 

A decisive bearish reversal might have LTC take a look at its earlier assist line close to $47.50 because the draw back goal, down about 45% from present value ranges.

LTC/USD weekly value chart. Supply: TradingView

Conversely, a breakout above the descending trendline resistance could push LTC value towards the $105-140 value vary.

This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a call.