Litecoin Registers Its Best Q1 Performance: Analysis
As of today, the reports show that Litecoin’s (LTC) price has increased by 50 percent in the first three months since this year has started which means that the altcoin now registers its best first-quarter performance ever and in the latest altcoin news we find out the reason behind it.
Litecoin is the fourth-largest cryptocurrency by market cap which is currently trading around $61. This is a 100 percent gain since January’s opening price of $30. Last year, the LTC price dropped by 48 percent and later by 24.6 percent which was the longest losing streak on record that led to the prices going down by 86 percent respectively.
LTC’s 100 percent rise in the first quarter of this year is the biggest gain on record yet. This is the second time that Litecoin increased in the first three starting months of a calendar year which means that the altcoin has rallied in the Q1 for two years in a row.
The gains for the first quarter of 2019 could have something to do with the mining reward halving that is supposed to happen this year. The reward for mining on the LTC blockchain should be reduced to 12.5 LTC by August 8th and this change means that the miners will be adding fewer coins to the ecosystem which could lead to a supply deficit.
Litecoin has created a long-term low near $1.12 in 2015 but later increased to $8.70 by July 2015 before falling again to $4.00 in August when the mining reward was cut in half to 25 LTC.
When Bitcoin rallied 100 percent in Q1, Litecoin also increased further in the second quarter with a minor pullback after the charts showed signs of bullish exhaustion. Accepting that a level below this could confirm a short-term bearish movement, it means that it can open the door to reaching a position of $45.00.
On the other, much higher side, a high-volume movement above the current price point could revive the bullish sentiment but this option seems unlikely for now. LTC seems to have found its range above the 10-month MA with the average however still trending a little south showing signs of a bearish setup.
As for further gains, a short rally could unfold if the average bottoms out.