Litecoin (LTC) has doubled its price in the first three months of 2019 and has registered its best ever Q1 result.
Trading at around $61 today, this represents a 100% gain on its price of $30 at the beginning of January, although it did record a six-month high of $64.20 earlier in March.
As Coindesk reports, “Last year, prices had dropped 48.5, 30, 24.6 and 49 percent in each quarter, respectively. The four-quarter losing streak was the second largest on record and saw prices fall by 86 percent.” It also points out, “the stellar gains seen in the first quarter of 2019 could be associated with the mining reward halving, due later this year.” From August 2019, the reward for mining on the litecoin blockchain will be reduced from 25 LTC to 12.5 LTC and this means that miners will add fewer coins to the ecosystem in the following months. As a result, there may be a deficit in supply.
According to historical data, when this process occurs, and it s happens every four years, it tends to boost the price of the coin about six months in advance. This could mean that LTC gets a bigger boost in Q2.
However, the bears are waiting in the wings. While LTC has found acceptance above the 10-month moving average (MA), currently at $53.60, the MA also appears to be dropping, indicating a bear trend. If there is a rally, it could be short-lived.