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The Litecoin (LTC/USD) price made a major bullish breakout this week as cryptocurrency prices rebounded. It has jumped in the past three straight days and is currently trading at the highest point since May this year. LTC has risen by about 133% from its lowest level in July.
LTC rebounds
Litecoin is a peer-to-peer cryptocurrency that works in a similar way to Bitcoin. As a second-generation product, new LTCs are created using mining. After mining, people can save them in their wallets, spend them, and even send them to their friends.
Litecoin’s network is relatively less congested than Bitcoin’s. Therefore, many people who prefer privacy in transactions prefer it to Bitcoin. Besides, the network is relatively faster and has lower fees.
The main reason why the LTC price is surging is because of the overall price action of Bitcoin. This week, Bitcoin has surged sharply and is currently hovering near its all-time high. Ethereum has already blasted to an all-time high.
Historically, Litecoin tends to have a close correlation with Bitcoin. This is partly because of the spread of prices of the two. For example, while Bitcoin is currently trading at more than $66,000, Litecoin is trading at $242. Therefore, many retail traders prefer buying Litecoin instead of the more expensive Bitcoin.
Meanwhile, on-chain data shows that activity in Litecoin’s network is booming. For example, the coin’s hash rate has jumped to 320 TH/s, which is the highest it has been since August this year. Mining difficulty and LTC wallets have also risen.
Litecoin price prediction
The daily chart shows that the LTC price has done relatively well in the past few months. And today, the coin managed to move above the key resistance level at $237. This was an important level since it was the highest level since September 13.
The Litecoin price has managed to move above the 25-day and 50-day moving averages. This is a bullish sign. Also, the price has moved between the 38.2% and 50% Fibonacci retracement levels. Oscillators like the Stochastic and the Relative Strength Index (RSI) have also risen.Therefore, for now, the bullish trend will likely continue as bulls target the key resistance level at $300. This price is about 25% above the current level. This view is in line with my previous LTC forecast.