Despite FTX-induced market declines from which the vast majority of cryptocurrencies have yet to recover, Litecoin has erased all of the gains and now sits almost 40% above the lows of the first half of November. :
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Litecoin’s bull run comes around eight months before the cryptocurrency’s third halving, which is in line with the historical average – historically, the price spike started around 250 days before the halving. The halving halves the supply of Litecoin and the reward for miners from the current 12.5 LTC to 6.25 LTC.
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Litecoin’s rally somewhat resembles a reversal from previous bull markets in August 2015 and August 2019, when Litecoin also rose amid the impending halving.
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On-chain data shows that the number of Litecoin wallet addresses is increasing as the price of the cryptocurrency rises. On December 4, the Litecoin Foundation reported that the number of LTC wallets has increased year-to-date from 117 million to 162 million today and continues to grow.
On December 1, 2022, Litecoin introduced itself as “the fastest growing cryptocurrency payment method in the world”. On November 30, US transfer giant Money Gram enabled trading of three cryptocurrencies on its mobile app, including Litecoin. Litecoin was also integrated with Google Cloud and Block Bank in November.
Litecoin is the second oldest cryptocurrency. It was developed in 2011 by former Google engineer Charlie Lee based on the open source code of Bitcoin. The developers are still developing the project. In May 2022, Litecoin finalized its privacy-focused Mimblewimble Extension Blocks (MWEB) update, enabling confidential transactions. This feature of Litecoin is still under development. In the last bull run, the cryptocurrency hit nearly $390 and is still down almost 80% from its all-time highs.
Litecoin on the D1 chart. The cryptocurrency hit levels last seen in April this year and we can see that it has fared much better than Bitcoin (in yellow) after FTX went bankrupt. If we look at the moving averages, we see that they recently displayed what is called a “golden cross”, indicating a potential trend reversal. In 2022, the formation that LTC has formed is very similar to the so-called saucer formation. The next level of support may come in at the 23.6% retracement at $73. Source: xStation 5
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