On March 23, Litecoin (LTC) emerged as one of many best-performing cryptocurrencies, surpassing its top-ranked rivals Bitcoin (BTC) and Ether (ETH).
Litecoin attracts Bitcoin and Ethereum buyers
LTC worth rose 5.5% to an intraday excessive of round $92.50. As compared, complete crypto market capitalization (TOTAL) rose 2.25% to $1.14 trillion, with BTC and ETH up 1.79% and 1.42%, respectively.
The Federal Reserve’s 25 foundation factors (bps) fee hike on March 22 seems to have been the principle driver behind the rout of its crypto rivals over the previous 24 hours.
Notably, for the reason that Fed’s announcement, the LTC worth has risen 15% in opposition to BTC and about 14.5% in opposition to ETH.
One purpose may very well be that Litecoin has comparatively underperformed the cryptocurrency market in March, falling greater than 6.5% month-to-date (MTD) in opposition to the crypto market’s 9.35% achieve.
Therefore, merchants noticed this as a “purchase the dip” alternative with extra upside potential for Litecoin, particularly since there have been no different vital catalysts.
Whale Accumulation Forward of Litecoin Halving?
In the meantime, on-chain knowledge reveals a rise in Litecoin provide held by addresses with balances between 1 million and 10 million LTC in March. Moreover, the share of provide held by addresses with balances between 100,000 LTC and 1 million LTC is reducing.
This means that whales with 10,000-1 million LTC are accumulating Litecoin to hitch the ranks of 1 million-10 million LTC holders in March.
Benefit from the Litecoin half
A halving occasion happens when the rewards for a brand new mining block are halved.
The earlier half within the Bitcoin and Litecoin markets preceded an prolonged bull run. Due to this fact, the subsequent Litecoin halving scheduled for August 2023 might also convey the same bullish consequence.
Unbiased market analyst Rect Capital famous that the joy surrounding the Litecoin halving could have influenced merchants to purchase LTC within the face of a “market-wide decline”.
$LTC It’s exhibiting power whereas a lot of the market struggles on this market-wide decline
It’s important to not neglect about #LTC Half of this in August 2023#BTC #Crypto #LITECOIN https://t.co/otWMSUAYV9
— Rekt Capital (@rektcapital) March 22, 2023
What’s subsequent for the LTC worth?
From a technical perspective, Litecoin appears poised to endure a worth correction within the coming weeks.
RELATED: Bitcoin Versus Ethereum Faces 6-Month Low – Will ETH Worth Rise?
Notably, LTC/USD is testing its multi-month descending trendline resistance for a doable pullback, which occurred in Could and November 2021.
A decisive bearish reversal may see LTC take a look at its earlier help line close to $47.50 as a draw back goal, which is about 45% beneath present worth ranges.
Conversely, a breakout above the descending trendline resistance would push the LTC worth in direction of the $105-140 worth vary.
This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling step includes threat and readers ought to do their very own analysis when making selections.
