The price of Litecoin has risen along with the rest of the cryptocurrency market. The price of LTC has increased steadily over the past week, and it is presently at $84.57, its highest level since June 10th. From its monthly low, it has risen by almost 17%.
Litecoin is not a security
The price of LTC is increasing for three key reasons. In the first place, Litecoin is preparing for the halving event that will take place on August 2 of this year. In a halving scenario, the total amount of rewards for miners is cut in half.
The halving event occurs every four years for Bitcoin and Litecoin. From its nadir in 2022, Litecoin’s price has risen over 105% in the time leading up to half of its block reward.
Second, Litecoin’s value has increased as a result of the inclusion of Litecoin on a new cryptocurrency exchange sponsored by Wall Street. Citadel Markets, Schwab, and Fidelity have all lent their support to the newly created EDX Markets. It’s unique in that it lets you buy and sell Bitcoin, Litecoin, Ether, and Bitcoin Cash, as opposed to just one. Non-custodial services are also provided, which means that no cryptocurrency is handled or stored by the company.
Third, recent actions by Blackrock and Deutsche Bank have contributed to an increase in the price of LTC. Blackrock said last week that it has submitted paperwork for the iShares Bitcoin Trust, the sole spot BTC ETF. WisdomTree and VanEck, among others, have shown interest in purchasing shares in the fund.
However, Deutsche Bank recently shared the news that it has applied for a crypto custodial license. This is significant since this bank is the largest in Germany and the ninth largest in Europe. As a result, previous concerns about regulations have been eased somewhat by this crypto news.
The Future of Litecoin’s Value
The price of LTC has grown for the previous seven days in a row, as seen by the daily chart. When the currency fell to $71.32, only slightly higher than its all-time low on March 11th, buyers stepped in and sparked a comeback.
Even if the Relative Strength Index (RSI) has crossed over the neutral level of 50, Litecoin’s price is still below the 25-day and 50-day moving averages. As a result, I anticipate further gains in the coin’s price until it is overbought. This indicates that it has the potential to increase to the $90 resistance level. If it rises above $90, it will enter the $100 range.
In conclusion, Litecoin’s price has increased dramatically during the previous week. There are a number of causes for this improvement. First, Litecoin’s price has benefited greatly from the rising institutional interest in cryptocurrencies in general. The adoption of Litecoin by major financial platforms and the support of prominent personalities in the financial sector have both contributed significantly to its rising value. In addition, Litecoin’s status as one of the oldest and most established digital currencies has contributed to its price increase, as has the general bullish market mood towards cryptocurrencies. Litecoin’s recent performance indicates its endurance and future development potential, even as the cryptocurrency market remains highly volatile and vulnerable to changes.
Q1. What is the Litecoin?
Former Google employee Charlie Lee founded Litecoin in 2011. Its form and usefulness make it the silver to Bitcoin’s gold. Litecoin’s speedier transaction confirmation speeds and distinct hashing algorithm make it better for everyday transactions.
Q2. Why has Litecoin increased for seven days?
Several factors have caused Litecoin’s seven-day price increase. First, institutional interest in cryptocurrencies, particularly Litecoin, has raised demand and price. Litecoin’s success has also been boosted by mainstream financial platforms and industry leaders’ support. Finally, market sentiment toward cryptocurrencies and Litecoin’s repute as a well-established digital currency have boosted its price.
Q3. Will Litecoin keep rising?
Like all cryptocurrencies, Litecoin’s price is subject to market forces. Its recent performance has been outstanding, but the cryptocurrency market is very volatile and prices may change quickly. Investors should investigate, weigh factors, and proceed cautiously.
Q4. What distinguishes Litecoin from Bitcoin?
Bitcoin and Litecoin are comparable yet different. Unlike Bitcoin, Litecoin focuses on ordinary transactions. Litecoin’s Scrypt hashing algorithm and reduced block generation time make it speedier than Bitcoin’s SHA-256. Litecoin’s supply ceiling is 84 million, four times Bitcoin’s 21 million.