Litecoin price breaks through $125, reaching highest level in a year

Litecoin rallied above $125 today, reaching its highest point in more than a year.

The price of the altcoin (cryptocurrency other than Bitcoin) reached a high of $128.25, up more than 10% on the day, according to CoinMarketCap. Currently, the digital asset is trading at its highest level since May 2018.

In explaining the recent rally, analysts have pointed to several factors influencing Litecoin’s price, including the upcoming Litecoin halving and Bitcoin’s strength over the past few months.

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Litecoin halving

Several market observers noted the critical importance of Litecoin’s halving, which will reduce the power to mine Bitcoin by 50%, as a major factor driving the cryptocurrency’s gains.

The event, scheduled for August, will cut Litecoin’s new supply in half.

Charles Hayter, co-founder and CEO of digital currency data platform CryptoCompare, spoke about the development, saying: “The halving is a price catalyst.”

Joe DiPasquale, CEO of BitBull Capital’s cryptocurrency fund of hedge funds, made a similar point, claiming: “Litecoin’s price rebound and recent surge are due to the upcoming halving.”

Litecoin is the “ market leader”

Some analysts have taken a different approach to analyzing Litecoin’s price performance over the past few months.

Bitcoin has risen more than 400% since December, when its price fell below $23, according to CoinMarketCap.

“Litecoin has been at the forefront of the recent bull run,” said Mati Greenspan, senior market analyst at social trading platform eToro. “Bitcoin is one of the most established currencies in the cryptocurrency market and has very strong fundamentals,” he added.

“Litecoin has been a market leader since the cryptocurrency market hit its bear market lows in late 2018,” said Jon Pearlstone, publisher of the CryptoPatterns newsletter.

Next target price

Following Litecoin’s recent rally, several technical analysts weighed in on where the altcoin might move next.

Pearlstone said: “Breaking the $120 price level is crucial for Litecoin as it has failed to break through this resistance twice recently.

“Right now, Litecoin is trading around $125, and if Bitcoin price stays at least between $7,600 and $8,000, we can expect a steady rise to $150, with some normal pullbacks along the way,” he said.

Cryptocurrency entrepreneur Erik Finman claims that the biggest reason for Litecoin’s recent gains is “the rise of Bitcoin and the expectation of a bull run this year.”

Pearlstone said that going forward, Bitcoin will face “huge resistance in the $130-$150 range.”

Image source: ccn

byRenie TUO