Litecoin is the epitome of what traders describe as a “legacy altcoin” with little utility within the current crypto ecosystem, however nonetheless usually sees giant rises in worth because of new entrants to the market shopping for it because of its established historical past inside the crypto ecosystem.
Moreover, the addition of Litecoin to platforms like PayPal can also enhance its adoption and utility, which can partially be the catalyst for its current uptrend.
Over the previous month, LTC had seen some intense features, with patrons pushing its value from lows of underneath $50.00 to highs of practically $100.00 earlier than it met some severe resistance that slowed its ascent.
Regardless of it being overshadowed by Bitcoin and having restricted improvement exercise, it’s nonetheless a preferred asset for merchants to make use of because of its excessive liquidity.
Many consider that the addition of it to PayPal’s suite of supported crypto belongings will assist usher in a rush of “no-coiner” cash into the asset, which can be why its value has risen over the previous few days and weeks.
One dealer is now noting that the cryptocurrency is forming one of many largest bullish divergences he has ever seen whereas trying in the direction of its Bitcoin buying and selling pair.
Litecoin Consolidates as Crypto Market’s Momentum Falters
On the time of writing, Litecoin is buying and selling down over 6% at its present value of $83.77. This marks a decline from current highs of over $90.00, however you will need to notice that it additionally marks a severe rally from its current lows of $64.00.
The cryptocurrency’s current volatility has come about because of an inflow of derivatives buying and selling exercise from merchants who’re banking on recent retail cash being directed to “legacy” altcoins like LTC.
LTC Varieties Large Bullish Divergence, Claims Analyst
One analyst defined that Litecoin is poised to see a severe push greater within the near-term as a result of formation of an extremely bullish divergence seen whereas trying in the direction of its Bitcoin buying and selling pair.
He pointed to this in a recent tweet, noting that it’s the “largest bullish divergence” he’s ever seen inside the crypto market – an indication that huge upside might be proper across the nook.
“LTC paired with BTC has the biggest bullish divergence I’ve ever seen for crypto. Let’s go,” he stated whereas pointing to the beneath chart.
Picture Courtesy of CryptoBirb. Supply: BTCUSD on TradingView.
So long as the legacy altcoins like XRP and Litecoin proceed pushing greater, there’s a powerful risk that it’s going to quickly break $100 and see one other leg up.
Featured picture from Unsplash. Charts from TradingView.