&l;span style=&q;font-weight: 400&q;&g;Litecoin prices have climbed sharply this year,&a;nbsp;producing&a;nbsp;notable gains&a;nbsp;&l;/span&g;&l;span style=&q;font-weight: 400&q;&g;as the digital currency benefits from strong fundamentals and favorable market conditions. &l;/span&g;
The cryptocurrency, which is very similar to bitcoin, reached $56.27 today, according to &l;a href=&q;https://coinmarketcap.com/&q; target=&q;_blank&q;&g;CoinMarketCap&l;/a&g;.
At this point, the digital currency was up more than 84% since the start of 2019, having reached its highest level since October,&a;nbsp;additional CoinMarketCap data reveal.
&l;span&g;&l;/span&g;
&l;strong&g;Oversold Market&l;/strong&g;
After peaking at more than $375 in December 2017, the cryptocurrency lost more than 90% of its value,&a;nbsp;falling below $25 late last year.
By experiencing such a dramatic decline,&a;nbsp;litecoin may have become oversold, claimed analysts.
This could have set the digital asset up for impressive gains.
&l;span&g;&q;The harder an asset price falls, the steeper the rebound often is and that seems to be a factor in Litecoin&s;s sharp gains this year,&q; said&a;nbsp;&l;/span&g;Josiah Hernandez&l;span style=&q;font-weight: 400&q;&g;, chief investment officer of &l;/span&g;&l;span style=&q;font-weight: 400&q;&g;&l;a href=&q;https://www.satoshi.capital/&q; target=&q;_blank&q;&g;Satoshi Capital&l;/a&g;.&a;nbsp;&l;/span&g;
With these market conditions in place, litecoin was well-positioned for gains, and this combined with some strong fundamentals to help propel the digital currency higher, said market observers.
&l;strong&g;Strong Fundamentals&l;/strong&g;
&q;While it can be said that Litecoin oversold last year, we believe the recent rise is a result of the factors,&q;&a;nbsp;&l;span&g;stated&a;nbsp;&l;/span&g;&l;span&g;Joe DiPasquale, CEO of cryptocurrency fund of hedge funds&a;nbsp;&l;/span&g;&l;a href=&q;https://www.bitbullcapital.com/&q; target=&q;_blank&q; rel=&q;nofollow noopener noreferrer&q; target=&q;_blank&q;&g;BitBull Capital&l;/a&g;&l;span&g;.&a;nbsp;&l;/span&g;
Growth in the the digital currency&s;s Lightning Network, anticipation surrounding the upcoming halving and &q;as well as Venezuela&s;s approval of Bitcoin and Litecoin for remittances,&q; said&l;span&g;&a;nbsp;DiPasquale.&a;nbsp;&l;/span&g;
&q;When compared with Bitcoin, Litecoin has typically been preferred as a transactional currency because of lower fees and most importantly, faster transaction confirmation times,&q; he emphasized.
&q;This results in increasing demand for Litecoin whenever people want to transfer crypto which can then be converted into other coins or fiat, and can be attributed as one of the reasons behind the recent surge.&q;
These fees should go even lower when&a;nbsp;Litecoin Core 0.17 is released, noted&a;nbsp;Danny Kim, head of growth at cryptocurrency prime&a;nbsp;dealer&a;nbsp;&l;a href=&q;https://www.sfox.com/&q; target=&q;_blank&q;&g;SFOX&l;/a&g;.
&q;It is expected that Litecoin&a;rsquo;s next update will reduce its transaction fees by 10x, making it materially more useful and valuable as a medium for everyday transactions,&q; said Kim.
&l;strong&g;A Dream of Spring&l;/strong&g;
Another major development cited as potentially bolstering litecoin prices is hopes that the so-called &q;crypto winter,&q; harsh market conditions that have coincided with significant losses and the shuttering of many industry firms,&a;nbsp;will soon be over.
&q;The entire crypto market has been growing increasingly optimistic lately as adoption continues to rise,&q;&a;nbsp;&l;span&g;said&a;nbsp;&l;/span&g;&l;span&g;Mati Greenspan, senior market analyst at&a;nbsp;&l;/span&g;&l;span&g;social trading platform&a;nbsp;&l;/span&g;&l;a href=&q;https://www.etoro.com/en-us/&q; target=&q;_blank&q; rel=&q;nofollow noopener noreferrer&q; target=&q;_blank&q;&g;eToro&l;/a&g;&l;span&g;.&a;nbsp;&l;/span&g;
&q;Crypto winter seems to be coming to an end and people are preparing for spring.&q;
&l;em&g;Disclosure: I own some bitcoin, bitcoin cash and ether.&a;nbsp;&l;/em&g;&l;/p&g;
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