Litecoin is one of the best performing cryptocurrencies of 2019, up by an incredible 360 percent since the beginning of the year.
Opening the year at a low of $29.82, Litecoin has climbed to its incredible current high of $137 and looks set to break through $140 soon. In the past 24 hours, the coin has climbed another 6.36 percent and looks like it might keep going.
The Litecoin Halving Event
Litecoin is a fork of the original Bitcoin blockchain, aimed at providing an easier to use cryptocurrency with lower fees and waiting times on transactions. Like Bitcoin, it uses a proof-of-work algorithm that requires mining to sustain the network. Also like Bitcoin, it benefits from a halving event approximately every four years that halves the reward paid out to miners for verifying blocks. The event is usually proceeded by a bull run and in more recent years has also been preceded by a surge in price as investors rush to accumulate assets before the impending bull run.
Litecoin’s next halving event is expected to happen in about two months from now, which is likely the reason for its exponential growth throughout this year. Bitcoin is only expecting another halving event in May next year but already appears to be benefiting from FOMO buying power. While the majority of other altcoins are experiencing minor losses lately, Litecoin continues to climb, making new yearly highs on a weekly basis. It is now trading at around the same price it was enjoying in May last year and has recovered all of the losses it suffered in the 2018 bear market.
Litecoin (LTC) Price Analysis
On the upside, the LTC/USD trading pair is likely to face resistance at the short-term Fibonacci extension above $140. Above that, the $150 level is a significant psychological selling point and the 38.2 percent Fibonacci at $160 will offer extra resistance.
In the unlikely event that Litecoin begins a downside trend reversal, it will find support at the previous $125 resistance-turned-support level and the 50-day simple moving average (SMA50) at $115.