Litecoin gains bullish momentum 📈⚡

11:05 am 5 December 2022

Despite FTX-induced market declines, from which the vast majority of cryptocurrencies have yet to recover, Litecoin has erased all gains and is now nearly 40% above the lows of the first half of November:

  • Litecoin's bullish turnaround comes about eight months before the cryptocurrency's third halving, which is in line with the historical average - historically, it started rising about 250 days 'before halving'. Halving will halve Litecoin's supply and reward to miners, from 12.5 LTC currently to 6.25 LTC; 
  • Litecoin's rally may resemble a bit of a trend reversal of previous bull markets, from August 2015 and August 2019. At that time, Litecoin was also rising in the face of impending halving;
  • On-chain data shows that Litecoin wallet addresses are increasing, as the cryptocurrency's price rises. On December 4, the Litecoin Foundation reported that since the beginning of the year, the number of LTC wallets has increased from 117 million to 162 million today, and continues to grow;

On December 1, 2022, Litecoin declared itself "the fastest growing cryptocurrency payment method in the world." On November 30, U.S. transfer giant Money Gram enabled trading of three cryptocurrencies on its mobile app, among others, Litecoin. Litecoin was also integrated with Google Cloud and Block Bank in November.

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Litecoin is the second oldest cryptocurrency. It was created by former Google engineer Charlie Lee in 2011 based on Bitcoin's open-source code. Developers are still developing the project. In May 2022, Litecoin finalized its privacy-focused Mimblewimble Extension Blocks (MWEB) update to provide confidential transactions. This feature of Litecoin is still under development. In the previous bull market, the cryptocurrency reached nearly $390 and is still nearly 80% below its historical highs.Litecoin chart, D1 interval. The cryptocurrency has climbed to levels last seen in April this year, and we can see that after the FTX bankruptcy, it is doing significantly better than Bitcoin itself (yellow chart).  Watching the 100- and 200-session averages, we see that a recent bullish crossing of their so-called 'golden cross' has taken place, signaling a potentially more permanent trend reversal.Looking at the formation formed by LTC at 2022, we also see a similarity to the so called saucer formation. Potential closest support levels are the 23.6 Fibonacci retracement near $73. Source: xStation5

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