It seems that the halving effect is very attractive to investors, as the Litecoin price is benefiting greatly from it.
While almost the entire crypto market remains on the ropes, the price of Litecoin marks annual highs against Bitcoin, beginning to leave a downward trend of several years, and the reason seems to be the coming halving of this cryptocurrency.
At the time of this writing, LTC is trading at $76.16, accumulating a slight loss of 0.04% in the last 24 hours, but maintaining a gain of 20.07% in the last 7 days. With a capitalization of $5.461 million, it is the 13th largest cryptocurrency on the market.
Litecoin price increase stands out in the market
While Litecoin develops an isolated bullish rally, it is managing to break a bearish trend against Bitcoin that has lasted for more than 2 years.
Today we see a very positive scenario on the LTC vs BTC weekly chart, with fast moving averages crossed upwards, and a price approaching the 200-period SMA to challenge it.
This 200-week SMA could be a hurdle in this rally that already seems to be quite extended.
However, the current behavior continues to be a very good sign for the holders of this cryptocurrency.
The halving is the reason for Litecoin purchases
Surprisingly, this cryptocurrency is performing better than other big ones like Bitcoin or Ethereum.
The reason for this is that the next Litecoin halving will take place in August 2023, an event that will halve the issuance speed of this crypto.
Because this directly influences the supply, it is very feasible to expect a price rise, in case the demand for coins remains the same or increases.
For this reason we are already starting to see gains as investors and traders try to get ahead of the move.
Litecoin has remained a cheaper alternative to Bitcoin for quite some time, coming to be considered the silver of cryptocurrencies.
Michael Saylor, creator of the investment fund with the largest Bitcoin reserves, recently assured that Litecoin is a good digital commodity, thanks to its similarities with the queen of cryptocurrencies.
In the LTC vs USDT chart we also see a good scenario
While everyone is still on the ropes against the dollar, Litecoin left behind the short and medium-term downtrend against the greenback.
Today on the LTC vs USDT weekly chart we see how the 8-period EMA and 18-period SMA are crossed upwards, while the price goes through the closest resistance, located at $63.20.
Now that the price is around $77, it is likely that we will see more gains in the short term.
The next major hurdle will be the 200-period SMA on the weekly, currently sitting near $100. If this indicator is exceeded, we could be confirming the start of a rally in search of new all-time highs.