Litecoin Is Leading The Market Again
Litecoin, it’s leading the market again. The world’s first, best off-shoot of the Bitcoin blockchain is making a big move. The coin is up more than 10% in the last 24-hours and more than 445% in the last few months making it the best returning coin in my portfolio. The move is driven by two things, Litecoin’s growing popularity and the upcoming halving. The halving is an important feature of the LTC network that occurs every 840,000 blocks ensuring there will be LTC to mine for many years to come.
What the halving does is simple, it cuts the number of Litecoin’s a miners can earn for creating a block by half. What this means is that, after the next halving, in about 2 months, each block will only be worth 12.5 LTCs where before they were worth 25LTCs. In terms of LTCs value it will cost the miners the same amount of money to produce a block, because they will only get half as many LTCs per block theoretically all LTCs will be worth twice as much as before.
Today’s move in Litecoin did more than extend its rally above resistance targets, it helped LTC climb a rung in the CoinMarketCap rankings. Once at #5 spot in terms of market cap, LTC has now overtaken Bitcoin Cash for #4 spot. To those hoping LTC will continue to climb the rankings, don’t hold your breath. LTC may overtake Ripple for #3 spot but it will have to double from today’s prices (with XRP holding steady) for that to happen.
On a technical basis the rally looks good but may be running out of steam. The candles are very bullish and the indicators support rising prices albeit with divergences showing. The divergence in MACD is especially troubling as it may lead to a top or reversal at some point in the future. That said the next target for resistance worth noting is close to $180, another 44% upside to today’s prices.
The long-term weekly chart is more bullish, showing a clear beak of resistance supported by the indicators and extending its move higher. The caveat with this one is that stochastic is consistent with a price correction that may see LTC trade lower in the near term. The long-term outlook is bullish though. A test of $180 is expected in the next two months, a move above that is likely once the halving is complete.