- Litecoin price has been in a strong bullish trend in the past few weeks.
- It is about to form a golden cross pattern, where the 50-day and 200-day MAs crossed over.
Litecoin price has defied gravity in the past few weeks even as other big-cap cryptocurrencies recoil. LTC surged to a high of $85, which was the highest level since May 9 of this year. It has surged by more than than 75% from the lowest level in November and 104% above the lowest level this year.
Why is LTC surging?
Litecoin price has been in a strong bullish trend in the past few weeks. This rebound has helped push its total market cap to over $6 billion, making it the 12th biggest cryptocurrency in the world.
It is unclear why Litecoin has outperformed other popular large-cap coins like Ethereum, Bitcoin, Cardano, and XRP.
One potential reason is that the coin’s hashrate has been in a strong upward trend. According to Coinwarz, the coin’s hashrate stands at 575 TH/s, which is much higher than this year’s low of 338 TH/s.
As I wrote in this article, hashrate is an important measure in the blockchain industry. It is important because it shows the health of the network. Its mining difficulty has rallied to an all-time high of 20.64 million.
Find out how to buy Litecoin.
Litecoin price rally means that its correlation with Bitcoin has faded. Historically, BTC and LTC were some of the most correlated coins in the world. This correlation emerged because of the close relationship between the two.
Litecoin was established as a hard fork of Bitcoin. Its upgrades made it much faster than Bitcoin. At the same time, Litecoin has lower transaction costs than Bitcoin.
Another possible reason why LTC price rallied is the fear of missing out (FOMO) as investors piled into the coin. Historically, cryptocurrencies tend to rally when FOMO happens.
Litecoin price prediction
The daily chart shows that the LTC price has been in a strong bullish trend in the past few days. In this period, the coin moved above the important resistance level of $67.66, which was the highest point on September 13. The Relative Strength Index (RSI) has risen to 70.
Notably, Litecoin price is about to form a golden cross pattern. In price action analysis, this pattern happens when the 50-day and 200-day moving averages make a crossover. If this happens, the next key resistance level to watch will be at $100.
A drop below the important support level at $70 will invalidate the bullish view. It will mean that there are still sellers in the market. If this happens, the next key level to watch will be at $60.
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