Litecoin has observed a sharp increase of around 18% during the past day as the much-anticipated halving is just over a month away now.
Litecoin Outperforms Market With A Strong 18% Surge
Like most of the wider cryptocurrency market, LTC had enjoyed a sharp rally a week or so back, which had taken its price above the $90 mark. Unlike coins like Bitcoin, however, the asset had failed to maintain at these post-surge levels, as it slid off during the days that followed, until eventually bottoming out at the low $80 level.
In the past day, however, tides seem to have rapidly shifted for Litecoin, as the asset is now trading above $101 after registering a sharp growth of 18% during the last 24 hours. The below chart shows how the cryptocurrency has performed recently.
Looks like the coin has observed a sharp uptrend today | Source: LTCUSD on TradingView
As you can see in the graph, Litecoin was around the $81 level only a couple of days back. This latest turnaround for the asset has meant that it has now surpassed the high registered around the start of the month.
In terms of daily returns, LTC has outperformed almost all the top 20 cryptocurrencies by market cap; Bitcoin Cash (BCH) is the only exception with its whopping 26% gains in the same period.
As analyst Tony “The Bull” pointed out on Twitter, Litecoin formed a golden cross just before this surge, as its 50-day moving average (MA) has crossed over its 200-day MA.
2020 it is#Litecoin has golden crossed, days after a death cross
— Tony “The Bull” (@tonythebullBTC) June 30, 2023
Interestingly, only a few days ago, the same MAs had also formed a cross of the opposite type: the death cross. The bullish cross canceling this bearish one out merely days later is a pattern similar to the one seen back in 2020, which preceded the bull run.
LTC Only Has 34 Days To Go For The Next Halving
Litecoin also has a strong bullish narrative coming up in the form of its halving. The “halving” is an event where the block rewards of the cryptocurrency are permanently cut in half.
As the block rewards are the only way to introduce new LTC into the circulating supply, the halving tightens up its production rate. This increased scarcity is why the event has historically been hyped up as a bullish one.
Halvings take place roughly every four years, and the next one is estimated to place on August 3, 2023, which is just 34 days away. It now remains to be seen whether the current price surge will be an extended rally that leads to the halving, or if this is another attempt that would run out of steam before long.
Featured image from Michael Förtsch on Unsplash.com, chart from TradingView.com