Litecoin appreciates over 20% at the beginning of the year
Litecoin

Litecoin appreciates over 20% at the beginning of the year

By abraomarcos | abraomarcos | 5 Jan 2020


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Cryptocurrency Litecoin had a very complicated year 2019, both for its price and its fundamentals. However, now at the beginning of the year you can see signs that last year's negative trend is corrected with the currency having a rally of over 20% in the early days of 2020.

During 2019 a very important event took place in Litecoin's network: The halving, that is, the diminishing of the reward for block mining. Commonly and through historical data it is possible to determine that halving is a positive event for a cryptocurrency ecosystem, especially in relation to price.

This is precisely why many are betting on Bitcoin halving as a catalyst for the next possible asset appreciation. However, if we use Litecoin as a reference, this high certainty may not be so certain.

The Litecoin hash rate on the halving day was 381.29TH / s, and at the time of publication of this article, the hash rate was 187.99 TH / s. This represents a 50% drop in more than 3 months.

Along with the drop in computing power it was also possible to notice that the price was plummeting. By November 8, Litecoin had lost 40% of its value in USD terms and 22% of its value in BTC terms.

 

Litecoin Quote: How much is Litecoin worth today?
 

That made Litecoin have a very complicated 2019. The low hash power demonstrates less investor interest and consequently greater network vulnerability as rash is what ensures the security of the entire blockchain.

A different 2020 for Litecoin?
Although last year was tricky for cryptocurrency 2020 it could have started a lot better. In the last 2 days the currency has been steadily appreciating, ensuring a more than 20% increase in its value since January 3.

The currency was being quoted at $ 38 on day 3, since then the value has lurched and is around $ 44.8. The currency first saw a sudden surge to $ 42 and has since been testing new resistance and being held by holders above $ 40.

As a result, the currency may be showing a turning signal and may continue to appreciate during the year. It is not known whether this movement is related to the law of supply and demand ultimately affecting the ecosystem or whether it is a common movement.

Remember that Charlie Lee, the creator of Litecoin, was famous for dumping all his cryptocurrencies during the Litecoin rally, so the currency is not immune to criticism of market manipulation. So be very careful!

abraomarcos
abraomarcos

Crypto Investor


abraomarcos
abraomarcos

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