The price of Litecoin (LTC) has defied gravity during the current crisis and has outperformed most other cryptocurrencies. This week, the price of LTC has risen again and in the meantime has reached a high of 85 US dollars.
This price was the highest since May 9 this year. The price of LTC has since declined somewhat and the coin is trading at around $80 on Tuesday morning. Still, that’s almost double from this year’s low.
Why has the price of LTC increased so much?
Litecoin is undoubtedly among the winners of the recent crypto crisis triggered by the collapse of FTX. This cryptocurrency has been in a strong uptrend for the past few weeks, while the prices of other coins are struggling to recover.
This increase has helped Litecoin’s total market capitalization to exceed $6 billion. It is now the 12th largest cryptocurrency in the world.
There is no clear answer as to why Litecoin rallied faster than other popular large cap coins like Ethereum, Bitcoin, Cardano or XRP.
One possible explanation is the hash rate of this cryptocurrency. It has also surged recently and is now at 575 TH/s according to Coinwarz. This is much higher than this year’s low of 338 TH/s.
As I wrote in this article, hash rate is an important metric in the blockchain industry. This is important because it shows the health of the network. Mining complexity increased to an all-time high of 20.64 million.
During the current price rally, Litecoin has also lost its correlation with Bitcoin. Historically, BTC and LTC prices have always moved in unison. This correlation results from the close relationship between the two blockchains and has hardly been so pronounced with any other coin.
Litecoin was created as a hard fork from Bitcoin. The upgrades have also made this blockchain much faster than Bitcoin. Litecoin also has lower transaction costs than Bitcoin.
Another possible reason for rising SLD prices is FOMO: the fear of missing out. Currently, many investors are flocking to this cryptocurrency, which is driving up its price even further.
Litecoin Price Prediction
The price chart shows that the LTC price has been in a strong uptrend for the past few days. During this period, the coin traded above the key resistance of $67.66, its highest price on September 13. The relative strength index (RSI) reached the value of 70.
Litecoin price is about to form a chart formation known as the Golden Cross or “Golden Cross”. In price action analysis, this pattern occurs when price crosses the 50-day and 200-day moving average lines. If this happens, the next key resistance will be $100.
A break below the key support at $70 would invalidate the bullish view. This would mean that there are still sellers in the market. In this scenario, the next key level is $60.
In this guide, we explain how to buy or short sell Litecoin.