With the availability of recent cash to be halved in lower than 5 weeks, litecoin is outpacing its friends.
The fourth-largest cryptocurrency by market capitalization is presently buying and selling at $123, representing 5 % beneficial properties on a seven-day foundation, in line with information supply CoinMarketCap.
In the meantime, bitcoin, the highest cryptocurrency by market worth, is presently reporting a meager 1 % acquire on a weekly foundation. Different top-10 cryptocurrencies are buying and selling blended as seen within the desk under.
- Cardano, down 10 %, is the worst performing top-10 cryptocurrency over the past seven days.
- ETH, XRP, BCH, and EOS are flashing pink.
- Binance coin is up a staggering 481 % on a year-to-date foundation, adopted by litecoin, up 305 %.
Litecoin’s current comparatively shining efficiency could possibly be related to the mining reward halving due on Aug. 6 this yr.
The method is aimed toward curbing inflation by lowering the cash paid out for mining on litecoin’s blockchain by half. So, after Aug. 6, miners will get 12.5 cash for each block mined – down 50 % from the present reward of 25 cash.
Primarily, miners will likely be including fewer cash to the ecosystem, possible resulting in much less in circulation. The approaching provide lower may need helped LTC outperform its friends within the final seven days.
Whereas it’s logical to count on the cryptocurrency to rise additional within the run-up to the occasion, the upside appears to be like restricted. In any case, LTC has already witnessed phenomenal progress in each value and non-price metrics to date this yr, and is presently up greater than 300 % on a year-to-date foundation.
In the meantime, litecoin’s hash charge, or computing energy devoted to mining, rose to a document excessive of 468.1019 TH/s this week. Notably, the metric is presently up 220 % from the low of 146.2118 TH/s seen in December.
All-in-all, the market could have largely priced within the reward halving already. In actual fact, if history is a information, the likelihood of LTC witnessing a pointy pullback within the run-up to the Aug. 6 occasion is excessive.
It’s value noting that LTC had nosedived from $8.72 to $2.55 in 6.5-weeks main as much as the earlier reward halving, which happened on Aug. 25, 2015.
Technical charts are additionally signaling scope for a near-term value drop.
Whereas the bullish larger lows, larger highs sample is undamaged, the relative power index (RSI) is reporting a bearish divergence and the 5- and 10-candle shifting averages have produced a bearish crossover.
Consequently, the value dangers falling to the 200-candle MA, presently at $221. A violation there would expose the 50-candle MA, presently at $83.00.
On the upper facet, a high-volume break above $140 is required to show the following main resistance lined up at $182 (Might 2018 excessive).
Disclosure: The writer holds no cryptocurrency on the time of writing