Litecoin in bull market after a sharp increase last week?

After the announcement of the Litecoin team that the MimbleWimble protocol will be implemented on the blockchain, the value of the altcoin rose sharply. A so-called halving event can also ensure that the current momentum of the fourth largest cryptocurrency increases even further.

Last week Litecoin announced in a blog post that it will investigate whether it can implement the so-called MimbleWimble protocol on the blockchain. This protocol would enable the making of trusted transactions. In the blog post the team wrote:

We started investigating the possible addition of privacy and fungibility to Litecoin by on-chain conversion of regular LTC to a Mimblewimble variant of LTC.

After the announcement, the LTC rate increased by initially 14%. After the rest of the top 100 cryptocurrencies also shot up, the value of Litecoin eventually rose by no less than 24%.

In addition to the announcement of the protocol, the so-called halving event in 179 days can further strengthen the momentum. The halving event concerns the halving of the mining rewards for miners when they minate a block. In the past, the halving of the mining rewards for Bitcoin miners ultimately resulted in sharp price rises.

With the upcoming halving in combination with various technical factors that indicate that Litecoin might end up in a bull market, the price may rise even further. One of those technical indicators is the 200-week moving average. This technical indicator is a line that indicates the average rate over a period of 200 weeks. This can be used to determine the trend of the price, which was bearish in the past few months. The altcoin is broken up there after the sharp increase in recent days, which is a positive signal.

It is therefore possible that Litecoin will increase even further than it has already done in the past few days. At the time of writing, Litecoin (LTC) is at a loss and it is therefore uncertain whether the crypto actually ended up in a bull market.