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 attributable to new entrants to the market shopping for it attributable to its established historical past inside the crypto ecosystem.
Moreover, the addition of Litecoin to platforms like PayPal may increase its adoption and utility, which can partially be the catalyst for its current uptrend.
Over the previous month, LTC had seen some intense positive factors, with consumers pushing its value from lows of below $50.00 to highs of practically $100.00 earlier than it met some critical resistance that slowed its ascent.
Regardless of it being overshadowed by Bitcoin and having restricted growth exercise, it’s nonetheless a well-liked asset for merchants to make use of attributable to its excessive liquidity.
Many imagine that the addition of it to PayPal’s suite of supported crypto property 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 it is very important word that it additionally marks a critical rally from its current lows of $64.00.
The cryptocurrency’s current volatility has come about attributable to an inflow of derivatives buying and selling exercise from merchants who’re banking on contemporary retail cash being directed to “legacy” altcoins like LTC.
LTC Varieties Huge Bullish Divergence, Claims Analyst
One analyst defined that Litecoin is poised to see a critical push greater within the near-term because of the 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 large 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 chance that it’s going to quickly break $100 and see one other leg up.
Featured picture from Unsplash. Charts from TradingView.