Litecoin is the epitome of what investors refer to as “legacy altcoin,” which is of little use in the current crypto ecosystem, but is still seeing strong growth in value as new entrants buy it due to its established history within the crypto ecosystem.
In addition, the addition of Litecoin to platforms like PayPal can also increase adoption and utility, which in part may be the trigger for the recent upward trend.
LTC had some intense gains over the past month, with buyers pushing their price from lows below $ 50.00 to highs of nearly $ 100.00 before encountering serious resistance that slowed the climb.
Although overshadowed by Bitcoin and with limited development activity, its high liquidity makes it a popular asset for traders.
Many believe the addition to PayPal’s suite of supported crypto assets will help usher in a rush of “no-coin” money into the asset, which is why the price may have increased in the past few days and weeks.
A trader now notes that the cryptocurrency is forming one of the largest bullish divergences he has ever seen when looking at his Bitcoin trading pair.
Litecoin is consolidating as the momentum folder of the crypto market
At the time of writing, Litecoin is trading over 6% at its current price of $ 83.77. This is a decrease from recent highs of over $ 90.00. It is important to note, however, that this is also a serious rally from the recent lows of $ 64.00.
The recent volatility in the cryptocurrency is due to an influx of derivatives trading activity from traders betting on fresh retail money directed to “old” altcoins like LTC.
LTC forms massive bullish divergence, analyst claims
One analyst stated that Litecoin will see a serious spike in the short term as an incredibly bullish divergence is forming when looking at its Bitcoin trading pair.
He pointed in a new tweetand notes that this is the “biggest bullish divergence” he has ever seen in the crypto market – a sign that a massive uptrend could be just around the corner.
“LTC paired with BTC has the largest bullish divergence I have ever seen for crypto. Let’s go, ”he said, pointing to the table below.
Image Courtesy of CryptoBirb. Source: BTCUSD on TradingView.
As long as the old altcoins like XRP and Litecoin keep rising, there is a good chance they will break $ 100 soon and see another leg up.
Featured image from Unsplash. Charts from TradingView.