Litecoin has risen sharply in recent months.© 2018 Bloomberg Finance LP
Litecoin prices have climbed sharply this year, producing notable gains as the digital currency benefits from strong fundamentals and favorable market conditions.
The cryptocurrency, which is very similar to bitcoin, reached $56.27 today, according to CoinMarketCap.
At this point, the digital currency was up more than 84% since the start of 2019, having reached its highest level since October, additional CoinMarketCap data reveal.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
After peaking at more than $375 in December 2017, the cryptocurrency lost more than 90% of its value, falling below $25 late last year.
By experiencing such a dramatic decline, litecoin may have become oversold, claimed analysts.
This could have set the digital asset up for impressive gains.
"The harder an asset price falls, the steeper the rebound often is and that seems to be a factor in Litecoin's sharp gains this year," said Josiah Hernandez, chief investment officer of Satoshi Capital.
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.
"While it can be said that Litecoin oversold last year, we believe the recent rise is a result of the factors," stated Joe DiPasquale, CEO of cryptocurrency fund of hedge funds BitBull Capital.
Growth in the the digital currency's Lightning Network, anticipation surrounding the upcoming halving and "as well as Venezuela's approval of Bitcoin and Litecoin for remittances," said DiPasquale.
"When compared with Bitcoin, Litecoin has typi...