The Litecoin (LTC/USD) price has made a strong comeback recently as the market mood has improved. It is trading at $135.62, which is about 43% above the lowest level this year. It is also trading at the highest level since January 20th.
Litecoin is a leading proof-of-work blockchain project whose goal is to help people make peer-to-peer payments. The network was started by Charlie Lee, who is one of the leading cryptocurrency pioneers.
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His aim was to create a simple cryptocurrency that people would use to send money to one another at a lower cost. Since he was inspired by Bitcoin, Charlie attempted to solve some of the toughest challenges that BTC had.
For example, Litecoin handles transactions at a faster pace than Bitcoin. Its transaction costs are also substantially cheaper than those of Bitcoin. That makes it an ideal alternative.
However, the Litecoin price has struggled in the past few months. It has crashed by about 67% from its highest level in 202. Its ranking has also slipped from top 10 to the current 20. It has been overtaken by coins like Polygon, Crypto.com Coin, Shiba Inu, and Avalanche.
This decline is mostly because of the fact that Litecoin’s usage has been underwhelming in the past few years. While many investors have embraced Bitcoin, very few have moved to buy Litecoin.
In the past few days, however, the LTC price has made some improvements. It has risen from the year-to-date low of $98 to about $137. This performance has mirrored the performance of the Nasdaq 100 index, which has risen from its lowest level this year.
It is also because investors have embraced a risk-on sentiment as evidenced by the fear and greed index. It has moved from a low of 25 to almost 50.
The daily chart shows that the LTC price has been in a bearish trend in the past few months. This decline pushed it to a low of $98 from almost $300 in 2021. As it dropped, the price moved below the support at $136, which was the lowest level in September last year.
The coin has made some recovery recently and managed to move above the 25-day and 50-day moving averages. The Relative Strength Index has also moved upwards. Therefore, there is a likelihood that the Litecoin price will continue rising as bulls target the key resistance level at $150.
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