Litecoin is on the brink of overtaking Tether in terms of market cap following a 24-hour surge of 6.5%.
It is now trading above the crucial $70 level of resistance, which has suppressed price action since January 30.
If the next daily candle closes above $70 Litecoin will likely go on to test $78 before targeting the psychological level of $100.
After slumping to a gruelling low of $35 in December, Litecoin has risen by more than 100% with much of the cryptocurrency market experiencing a vital reversal.
Litecoin has also surged by more than 20% in the past week alone as traders attempt to hedge their bets on smaller market cap altcoins instead of Bitcoin.
The Bitcoin halving will commence in May with it being expected to result in a rally in the price of cryptocurrencies, including the likes of Litecoin and Ethereum.
The previous two halvings in 2012 and 2016 preceded a series of staggering bull markets that saw Bitcoin eclipse a new all-time high on two occasions.
If Bitcoin can manage to form a new all-time high in 2020, altcoins like LTC and ETH will eventually follow as profits will be diversified into higher risk altcoin investments.
However, LTC first needs to form a new higher high above $142, which was the local top during last June’s rally.
A breakout above $140 would open the metaphorical floodgates with Litecoin entering a new phase of price discovery that will likely see it trade above $185 at least.
Recently, the “Magical Crypto Friends” show – which is available on YouTube and features Litecoin founder Charlie Lee – discussed the Litecoin Summit 2019.
The show covered the most important discussions in the community. From Litecoin acting as a store of value to new development updates.
Lee confirmed that the project was focused on privacy improvements as well. The Litecoin development team is working with the Mimblewimble protocol, specifically the developers behind Grim, with a view to potentially adding the privacy protocol as an extension block.
According to Lee, it would work as follows:
“We’re working with the Grim++ developers to add an implementation of Mimblewimble. It adds an extension block to the Litecoin main-chain. You can transact between chains to use enhanced privacy.”
The goal would be to give Litecoin users improved privacy features when transacting.
Litecoin was released in October 2011 by Charlie Lee, a former Google employee. It is a fork of Bitcoin, with the main difference being a smaller block generation time. The protocol also increased the maximum number of coins and implemented a different script-based algorithm.
Litecoin is one of the leading cryptocurrencies and is one of the top 10 cryptocurrencies by market capitalisation.
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