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 achieve an intraday excessive of round $92.50. Compared, the full 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) fee 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.
One cause may very well 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% good points.
Therefore, merchants probably 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 steadiness between 1 million and 10 million LTC in March. Moreover, the share of provide held by addresses with a steadiness between 100,000 LTC and 1 million LTC has been dropping.
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 reduce in half.
Earlier halvings in Bitcoin and Litecoin markets have preceded prolonged bull runs. Subsequently, the following Litecoin halving, scheduled for August 2023, might additionally produce an identical bullish final result.
Impartial 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.”
$LTC is exhibiting power in the meantime a lot of the market struggles on this market-wide dip
Vital to not overlook concerning the #LTC Halving this coming August 2023#BTC #Crypto #LITECOIN https://t.co/otWMSUAYV9
— Rekt Capital (@rektcapital) March 22, 2023
What’s subsequent for LTC value?
From a technical perspective, Litecoin appears able to bear 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, just like what transpired in Might and November 2021.
A decisive bearish reversal might have LTC check its earlier assist line close to $47.50 because the draw back goal, down about 45% from present value ranges.
Conversely, a breakout above the descending trendline resistance could push LTC value towards the $105-140 value vary.
This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer entails threat, and readers ought to conduct their very own analysis when making a call.
