In contrast to other cryptocurrencies, Litecoin reached a bottom well in advance of the FTX drop. After briefly outperforming the rest of the market, the 13th most valuable company by market cap has now been stable.
With Litecoin perhaps on the verge of a significant, monthly momentum swing, the state of ennui may soon come to an explosive conclusion.
The Monthly Momentum of Litecoin May Become Bullish
The price of Litecoin has fluctuated between $90 and $105 during the past month. The monthly LTCUSD chart produced a long-legged doji because of the narrow $15 range, indicating market uncertainty. Doji frequently develops before a turn or strong continuation. Bulls must move higher and keep going where they have already begun because the monthly candle for January was up; otherwise, bears might swat them back down.
Just when Litecoin is ready to cross bullish on the monthly LMACD, there is a halt. The Exponential Moving Convergence Divergence indicator, a trailing, momentum-following technical analysis tool, has a logarithmic variant called the LMACD. A more precise comparison over longer periods is offered by the log version.
Also Read: What Cryptocurrency Will Take Off Next in 2023? Try Filecoin (FIL), Collateral Network (COLT), or Litecoin (LTC)
In the past, the LMACD histogram changing from red to green was sufficient to offer LTCUSD a respectable amount of upside. Will Litecoin continue to climb higher from here, with the signal on the monthly timescale likely to fire again?
Reasons Supporting Continued LTCUSD Rise
On the monthly LMACD chart above, there is a significant bullish divergence and cyclical activity that suggests a potential comeback. Notwithstanding the promising technical picture, Litecoin’s block reward halving occurs in August as opposed to Bitcoin’s yearly delay.
Investors have historically anticipated Litecoin halving events, which cause a selloff when they finally occur. LTCUSD increased by 500% in 2019 before being cut in half. The crypto winter came to an end thanks to LTC’s quick comeback. During the crypto bear market, network health measures like hash rate have only improved. Transactions on the LTC blockchain are scaling and growing unabatedly.
In comparison to once-hyped currencies being classified as securities by the SEC, Litecoin sharing its code with Bitcoin may ultimately be advantageous to the less interesting cryptocurrency. According to Investopedia, Litecoin is a cryptocurrency that developed from Bitcoin as a result of the latter’s success in the market. This alternative cryptocurrency, or “altcoin,” has emerged to enable investors to diversify their portfolio of digital currencies. One of the most well-known alternative currencies is Litecoin, which was developed by Charlie Lee, the director of engineering at Coinbase and a former employee of Google.
The most notable distinction between Litecoin and Bitcoin is that Litecoin generates a block, or transaction, in 2.5 minutes as opposed to 10 minutes for Bitcoin. Litecoin was the first to modify Bitcoin. Although it doesn’t matter to traders, miners who utilize gear to power Bitcoin’s network are unable to move to Litecoin. This discourages larger mining corporations from using Litecoin since they find it difficult to switch to another coin and maximize their income, which promotes a more decentralized environment.
According to Investopedia, Litecoin also has larger blocks and more coins in circulation, making transactions more inexpensive and quicker. Litecoin can transact much more quickly than Bitcoin, as was already said, but there are a few additional features that traders should be aware of. Due to its capacity to process transactions more quickly, Litecoin can manage bigger numbers of transactions than Bitcoin can without requiring a code change. With more “orphaned blocks,” Litecoin’s blocks would be bigger. In the hypothetical scenario of both networks having equal hashing power, litecoin’s quicker block time lowers the likelihood of double spending assaults.