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 succeed in an intraday excessive of round $92.50. In comparability, the entire 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.
LTC/ETH and LTC/BTC each day value chart. Source: TradingView
One purpose 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% positive factors.
LTC/USD March value efficiency vs. BTC/USD, ETH/USD, and TOTAL. Source: TradingView
Hence, merchants seemingly noticed this as a “purchase the dip” alternative for Litecoin with extra upside potential, notably as there have been little to no different notable catalysts.
Whale accumulation forward of Litecoin halving?
Meanwhile, on-chain knowledge exhibits an increase within the Litecoin provide held by addresses with a steadiness between 1 million and 10 million LTC in March. Additionally, the share of provide held by addresses with a steadiness between 100,000 LTC and 1 million LTC has been dropping.
Litecoin provide held by addresses holding 100,000 LTC to 10 million LTC. Source: TradingView
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 lower in half.
Previous halvings in Bitcoin and Litecoin markets have preceded prolonged bull runs. Therefore, the subsequent Litecoin halving, scheduled for August 2023, may additionally produce an identical bullish consequence.
Independent market analyst Rekt Capital famous that the euphoria across the Litecoin halving might have influenced merchants to purchase LTC within the face of a “market-wide dip.”
$LTC is displaying power in the meantime many of the market struggles on this market-wide dip
Important to not neglect in regards to 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 to be like able to endure a value correction within the coming weeks.
Related: 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, much like what transpired in May and November 2021.
A decisive bearish reversal may have LTC take a look at its earlier assist line close to $47.50 because the draw back goal, down about 45% from present value ranges.
LTC/USD weekly value chart. Source: TradingView
Conversely, a breakout above the descending trendline resistance might push LTC value towards the $105-140 value vary.
This article doesn’t include funding recommendation or suggestions. Every funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a choice.