Litecoin (LTC)is shining amidst the FTX-induced chaos in the crypto market. The strong performance of the cryptocurrency is perhaps due to an upcoming positive change in supply dynamics.
Litecoin (LTC) is up over 43% this month from $55 to $79. In the last 24-hour chart, the price has increased by 28%. Market leaders Bitcoin and Ethereum are down 19% and 26% this month.
The LTC price surge came 8 months before the halving, when the mining reward was cut in half. The Litecoin blockchain will reduce the rewards paid to miners for recording transactions from 12.5 LTC to 6.26 LTC per block.
The last rally in LTC price is similar to the pre-halving trend on August 26, 2015 and August 5, 2019.
Litecoin saw the bottom price a while ago and broke out of the downtrend. It showed a similar trend in the period in 2015 and 2019 and led the rise of Bitcoin. Investors in crypto and traditional markets often tend to be forward-looking and pre-price bullish/fall events.
And they may still be doing the same thing.
While Litecoin has soared to its highest level since May, it has yet to break above the trendline that characterized the bear market that started in April 2021.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.