Litecoin is causing a stir in the market as it records an impressive surge of nearly 15% in the weekly chart. This significant gain indicates a potential shift in momentum for the cryptocurrency.
Furthermore, the network usage of Litecoin is experiencing a remarkable increase, indicating growing interest and activity surrounding the digital currency.
Adding to the excitement, Litecoin’s halving event is looming ahead, which is anticipated to impact its value and market dynamics further.
According to the data from CoinMarketcap, Litecoin (LTC) is presently being traded at $92.00, experiencing a slight increase in value over the past 24 hours. Earlier today, the coin reached its daily peak at $94.87.
However, the weekly performance indicates a notable transformation as the coin initiated the week at $81.07 and steadily progressed toward crucial resistance levels.
Despite this, the current trading volume and market capitalization both indicate a decline, with a decrease of approximately 30.31% and 0.10%, respectively, in the last 24 hours’ time zone.
The technical indicators suggest a bullish sentiment, but the Fear & Greed Index shows extreme fear. Litecoin has decreased by -9.26% in the last 30 days, but a slight recovery is expected in the coming month.
However, the coin is projected to increase by 110.75% by the end of May to approximately $194.22. Currently, it is trading below the 200-day simple moving average (SMA), which has shown a buying signal since December 31, 2023. The price is also below the 50-day SMA, indicating a buy signal.
According to the indicators, the 200-day SMA will drop, and the price is expected to reach $82.35 by December. In the short term, the 50-day SMA suggests a price of $89.62. Additionally, the Relative Strength Index (RSI) is currently at RSIValue, indicating a neutral position for the LTC market.
Litecoin Soars To Second Place As Price Rally Continues
Litecoin’s (LTC) significant rise in the weekly chart makes it the second-best-performing digital asset, with a market capitalization of over $1 billion. The value of open futures contracts tied to Litecoin has reached $478 million, the highest since December.
This suggests a rise in new investment, although the market sentiment remains uncertain. According to Markus Thielen, head of research and strategy at Matrixport, LTC has benefited from congestion on the Bitcoin network caused by the surge in Bitcoin Request for Comment (BRC-20) tokens.
Litecoin also saw increased activity with the introduction of LTC-20, a fork of BRC-20. However, Thielen warns that Litecoin’s price may decline in the coming weeks as Bitcoin’s network congestion eases.
Additionally, historical data indicates a dominant selling trend leading up to Litecoin’s upcoming mining reward halving, expected in less than 80 days. Traders are advised to consider setting up shorts as momentum potentially turns lower.
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