Investing.com – Most cryptocurrencies are trading higher on Wednesday, rebounding from a bearish start to the week, but some stand out significantly from the rest.
This is particularly the case for , which took off by more than 26% over 24 hours and nearly 36% over a week at the time of writing this article.
The reasons for the rally are currently unclear, but several observers have noted that LTC’s bullish turn comes eight months ahead of the third Litecoin mining reward halving (halving) – an event programmed into the code that will reduce the rewards or paid to miners for recording transactions on the Litecoin blockchain from 12.5 LTC per block to 6.25 LTC per block.
Litecoin appreciated for being “boring”?
To put it simply, this is equivalent to a reduction in supply, which in theory has a mechanically bullish impact on the price (at equal demand, etc.). Some have also cited the “boring” nature of Litecoin to explain its appeal to investors.
Commenting on the chaotic market conditions lately, Litecoin Foundation Managing Director Alan Austin recently asked, “Have you had enough excitement?”.
Austin was referring to the “boring” reputation of Litecoin, which lacks glamor but in return offers a higher degree of stability than most other cryptocurrencies, an argument that indeed seems attractive given the chain of scandals that the market crypto has experienced this year.
Besides, with the exception of , Litecoin is perhaps the strongest cryptocurrency in terms of longevity, with 11 years of history, which is also reassuring in today’s environment.
The official (NYSE:) Litecoin Twitter account also fails to pinpoint a clear reason for the rally. On the other hand, there are many enthusiastic posts about the rise of Litecoin.
Yesterday, the Litecoin account notably shared an image highlighting that Litecoin’s rally in recent days has caused the cryptocurrency to overtake several others in terms of capitalization, including and , and predicting that the will be the next to be overtaken, which will happen. is done a few hours later.
The next cryptocurrencies that Litecoin, currently in 13th place in the top crypto, is likely to overtake are and .
Technical Signals to Watch for in Litecoin
From a graphical point of view, the strong bullish acceleration of Litecoin in the last two days has allowed it to break through the resistance zones of $64/$66 and $73/$75, which are now the first supports to consider on the market. daily chart.
The graph above also shows that the 100-day moving average (in blue) seems to be about to cross above the 200-day moving average. However, such a cross would be considered as an important bullish signal.
As for the potential targets if Litecoin accentuates its rise further, today’s high near $82 will be the first threshold to consider. Then the next logical target will be the major psychological threshold of $100.