Litecoin is the epitome of what buyers describe as a “legacy altcoin” with little utility within the current crypto ecosystem, however nonetheless usually sees giant rises in worth as a result of new entrants to the market shopping for it as a result of its established historical past throughout the crypto ecosystem.
Moreover, the addition of Litecoin to platforms like PayPal might also enhance its adoption and utility, which can partially be the catalyst for its latest uptrend.
Over the previous month, LTC had seen some intense good points, with consumers pushing its value from lows of beneath $50.00 to highs of almost $100.00 earlier than it met some severe 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 as a result of 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 wanting 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 latest highs of over $90.00, however it is very important notice that it additionally marks a severe rally from its latest lows of $64.00.
The cryptocurrency’s latest volatility has come about as a result of 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 Types Large Bullish Divergence, Claims Analyst
One analyst defined that Litecoin is poised to see a severe push larger within the near-term because of the formation of an extremely bullish divergence seen whereas wanting in the direction of its Bitcoin buying and selling pair.
He pointed to this in a latest tweet, noting that it’s the “largest bullish divergence” he’s ever seen throughout the crypto market – an indication that huge upside could possibly be proper across the nook.
“LTC paired with BTC has the most important bullish divergence I’ve ever seen for crypto. Let’s go,” he mentioned whereas pointing to the under chart.
Picture Courtesy of CryptoBirb. Supply: BTCUSD on TradingView.
So long as the legacy altcoins like XRP and Litecoin proceed pushing larger, there’s a powerful chance that it’ll quickly break $100 and see one other leg up.
Featured picture from Unsplash. Charts from TradingView.