Why is Litecoin ( $55.29 ) price up today?

Litecoin ( $55.29 ) (LTC) emerged as one of the best-performing cryptocurrencies on March 23, surpassing its top-ranking rivals Bitcoin ( $77,059.00 ) (BTC) and Ether (ETH). 

Litecoin ( $55.29 ) attracts Bitcoin ( $77,059.00 ) and Ethereum ( $2,281.17 ) investors

LTC price rallied 5.5% to reach an intraday high of around $92.50. In comparison, the total crypto market capitalization (TOTAL) has risen 2.25% to $1.14 trillion, with BTC and ETH rising 1.79% and 1.42%, respectively.

The Federal Reserve’s 25 basis points (bps) rate hike on March 22 appears to be the key driver behind Litecoin ( $55.29 ) beating its crypto rivals over the past 24 hours.

Notably, LTC price rallied over 15% versus BTC and about 14.5% versus ETH since the Fed announcement.

One reason could be that Litecoin ( $55.29 ) has relatively underperformed the cryptocurrency market in March, dropping over 6.5% month-to-date (MTD) versus the crypto market’s 9.35% gains.

Hence, traders likely saw this as a “buy the dip” opportunity for Litecoin ( $55.29 ) with more upside potential, particularly as there were little to no other notable catalysts. 

Whale accumulation ahead of Litecoin ( $55.29 ) halving?

Meanwhile, on-chain data shows a rise in the Litecoin ( $55.29 ) supply held by addresses with a balance between 1 million and 10 million LTC in March. Additionally, the share of supply held by addresses with a balance between 100,000 LTC and 1 million LTC has been dropping.

This suggests that the whales holding 10,000-1 million LTC have been accumulating Litecoin ( $55.29 ) in March to enter the 1 million-10 million LTC holders’ cohort.

Litecoin ( $55.29 ) halving euphoria

A halving event occurs when the rewards for mining new blocks get cut in half.

Previous halvings in Bitcoin ( $77,059.00 ) and Litecoin ( $55.29 ) markets have preceded extended bull runs. Therefore, the next Litecoin ( $55.29 ) halving, scheduled for August 2023, could also produce a similar bullish outcome.

Independent market analyst Rekt Capital noted that the euphoria around the Litecoin ( $55.29 ) halving may have influenced traders to buy LTC in the face of a “market-wide dip.”

$LTC is showing strength meanwhile most of the market struggles on this market-wide dip

Important not to forget about the #LTC Halving this coming August 2023#BTC #Crypto #LITECOIN https://t.co/otWMSUAYV9

— Rekt Capital (@rektcapital) March 22, 2023

What’s next for LTC price?

From a technical perspective, Litecoin ( $55.29 ) looks ready to undergo a price correction in the coming weeks.

Related:  Ethereum ( $2,281.17 ) faces 6-month lows versus Bitcoin ( $77,059.00 ) — Will ETH price rebound?

Notably, LTC/USD is testing its multi-month descending trendline resistance for a potential pullback, similar to what transpired in May and November 2021. 

A decisive bearish reversal could have LTC test its previous support line near $47.50 as the downside target, down about 45% from current price levels.

Conversely, a breakout above the descending trendline resistance may push LTC price toward the $105-140 price range.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.