Litecoin price continued its recovery on Monday as a sense of optimism spread in the crypto market. The coin surged to a high of $98, its highest point since July 30th. It has jumped by more than 67% from its lowest point in September last year.
Litecoin’s price surge is happening as the crypto fear and greed index soars. The index jumped to the extreme greed zone of 89. This is happening as Bitcoin and many altcoins have surged to their all-time highs. Bitcoin is now sitting comfortably above $72,000.
This is happening as the supply of Bitcoin in exchanges has dropped at a time when demand is rising. The iShares Bitcoin Trust (IBIT) has added over $13 billion in assets in a record time. Other Bitcoin ETFs like the Fidelity Wise Origin Bitcoin ETF and the one by Ark Invest have also added substantial assets.
Bitcoin’s supply is set to get tight in the coming months now that the halving event will happen in April. This will see the daily Bitcoin rewards fall from over 900 today to 450. As such, this supply and demand imbalance will likely lead to higher prices.
Litecoin went through a halving event in 2023. Before then, the coin’s price surged to $115 and then it pulled back to $57. This is a major warning for Bitcoin since the coin could pull back after the halving event happens in April.
Litecoin’s jump has led to a higher hash rate. Data shows that the hash rate rose to 966 TH/s on Monday, up from the weekend’s low of 932 TH/s. It remains sharply lower than the all-time high of 1.16 PH/s.
Litecoin price forecast
The daily chart shows that the LTC price has been in a strong uptrend in the past few weeks. It recently moved above the important resistance point at $79.48, its highest swing on December 9th.
The coin has also risen above the key resistance point at $94.63, invalidating a double-top pattern that has been forming. It has also risen ove the first support line of Andrew’s Pitchfork tool.
Litecoin has also rallied above the 50-day and 25-day Exponential Moving Averages (EMA). Therefore, the outlook for the coin is extremely bullish, with the next point to watch being at $115. This price is about 20% above the current level and is the highest point in July last year.
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