Litecoin Price Momentum Gains Steam as Hash Rate Soars

Litecoin has emerged as one of the best-performing cryptocurrencies in the world. LTC was actually soaring even before the recent crypto comeback. Its rally started in June last year when it settled to a low of $40.60. Since then, LTC price has surged by more than 123% and is now hovering at the highest level since May 9 of last year. 

Litecoin has outperformed BTC

Litecoin is a cryptocurrency that emerged from a software hard fork of Bitcoin. It was created to solve some of the biggest challenges that Bitcoin had such as high transaction costs and slow speeds. Instead of having a supply limit of 21 million, Litecoin has a limit of 84 million.

Therefore, being related to cryptocurrencies, Litecoin had a close correlation with Bitcoin for a long time. In most periods, it used to rise when Bitcoin was rising and vice versa. Recently, however, this correlation has faded. Litecoin has outperformed Bitcoin by far.

It is not clear why Litecoin has done better than Bitcoin. A likely reason is that activity in its network is robust. Data shows that Litecoin’s hash rate has jumped to 656 TH/s, which is slightly below the all-time high of 668 TH/s. 

Litecoin’s hash rate has been in a strong bullish trend in the past few years. It has moved from a low of 358 TH/s in February 2022 to 668 TH/s. Hash rate is an important metric that measures the health of a blockchain. A higher figure is usually a sign that the network is healthy.

LTC price forecast

The daily chart shows that the Litecoin price has been in a strong bullish trend in the past few days. It is being supported by the 25-day and 50-day moving averages. The coin also moved above the important resistance level at $84.94, the highest point on December 5. 

By moving above that level, it invalidated the double-top pattern that was forming. Therefore, the coin will likely continue rising as buyers target the next psychological level of $100. The stop-loss of this trade will be at $85.