Litecoin is the epitome of what investors describe as a “legacy altcoin” with little utility in the present crypto ecosystem, but still often sees large rises in value due to new entrants to the market buying it due to its established history within the crypto ecosystem.
Additionally, the addition of Litecoin to platforms like PayPal may also boost its adoption and utility, which may partially be the catalyst for its recent uptrend.
Over the past month, LTC had seen some intense gains, with buyers pushing its price from lows of under $50.00 to highs of nearly $100.00 before it met some serious resistance that slowed its ascent.
Despite it being overshadowed by Bitcoin and having limited development activity, it is still a popular asset for traders to use due to its high liquidity.
Many believe that the addition of it to PayPal’s suite of supported crypto assets will help usher in a rush of “no-coiner” money into the asset, which may be why its price has risen over the past few days and weeks.
One trader is now noting that the cryptocurrency is forming one of the largest bullish divergences he has ever seen while looking towards its Bitcoin trading pair.
Litecoin Consolidates as Crypto Market’s Momentum Falters
At the time of writing, Litecoin is trading down over 6% at its current price of $83.77. This marks a decline from recent highs of over $90.00, but it is important to note that it also marks a serious rally from its recent lows of $64.00.
The cryptocurrency’s recent volatility has come about due to an influx of derivatives trading activity from traders who are banking on fresh retail money being directed to “legacy” altcoins like LTC.
LTC Forms Massive Bullish Divergence, Claims Analyst
One analyst explained that Litecoin is poised to see a serious push higher in the near-term due to the formation of an incredibly bullish divergence seen while looking towards its Bitcoin trading pair.
He pointed to this in a recent tweet, noting that it is the “largest bullish divergence” he’s ever seen within the crypto market – a sign that massive upside could be right around the corner.
“LTC paired with BTC has the largest bullish divergence I’ve ever seen for crypto. Let’s go,” he said while pointing to the below chart.
Image Courtesy of CryptoBirb. Source: BTCUSD on TradingView.
As long as the legacy altcoins like XRP and Litecoin continue pushing higher, there’s a strong possibility that it will soon break $100 and see another leg up.
Featured image from Unsplash. Charts from TradingView.