As a seasoned crypto investor with over a decade of experience in this dynamic market, I find myself intrigued by the recent surge in Litecoin (LTC) and other major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE). My journey in this space has taught me to always keep a keen eye on the market trends and underlying fundamentals, and the current scenario presents an exciting opportunity.
Currently, Bitcoin (BTC) is flirting with a potential rally beyond the significant resistance/support level around $68k. Meanwhile, the altcoin market, spearheaded by Litecoin (LTC), appears to be on an upward trajectory as well. Ethereum (ETH) and Dogecoin (DOGE) are also witnessing a surge in bullish momentum. As per recent market data, Litecoin’s price has surged more than 12% over the past fortnight, currently trading at approximately $72.5 during the early European session on October 18th.
As a result, this mid-sized altcoin, valued at approximately $6 billion when fully diluted and with an average daily trading volume of around $556 million, has burst through its horizontal price range. From a technical perspective, the price of Litecoin relative to the U.S. dollar has built a solid support level near $59, which has been robustly maintained since August 2023.
Starting from 2018, Litecoin’s price has been moving within a larger triangle pattern, but it recently moved close to the top of this triangle, suggesting that a significant breakout might happen soon. Moreover, during the 2021 bull market, Litecoin, which is one of the largest cryptocurrencies using the proof-of-work consensus mechanism, didn’t perform as well as others did.
Consequently, Litecoin finds itself grouped alongside Ripple Lab’s XRP and Monero (XMR), primarily because they have not lived up to expectations in terms of performance, despite a widespread acceptance.
Factors Leading to Litecoin Price Breakout
Following the green light given to U.S. Bitcoin and Ether ETFs this year, an increasing number of investment managers are looking into the altcoin market for similar offerings. For example, Canary Capital has recently applied for a Litecoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission as early as this week.
The latest application for a spot LTC ETF by Canary Capital underscores an increasing institutional interest in altcoins in the current market. In fact, Grayscale Investments has long provided its Litecoin trust to its clientele and manages approximately $140 million in assets related to it. Furthermore, Fidelity Crypto has recently started offering Litecoin services to their clients as well.
According to data analytics from Santiment, the trading volume for Litecoin reached a 16-month peak of approximately $3.97 billion. This increase in trading activity was accompanied by an uptick in conversations about Litecoin on various social media platforms.
Currently, Litecoin is experiencing a brief yet significant surge, reaching over $73 for the first time since July. This marks its initial significant separation from Bitcoin and other altcoins since the spring season. The primary reasons for this breakout include:
⚡️ LTC’s continued rise of on-chain transaction volume, which has nearly crossed $4B…
— Santiment (@santimentfeed) October 17, 2024
As an analyst, I’ve observed significant expansion in the Litecoin network, largely due to strategic partnerships in the current period. For example, Venmo, a payment processor backed by PayPal Holdings Inc (NASDAQ: PYPL), recently teamed up with MoonPay. This collaboration allows US customers to purchase cryptocurrencies such as Bitcoin, Ether, and Litecoin, among others.
Currently, the surge in Litecoin’s price is not only influenced by the optimistic cryptocurrency forecast for October but also by the anticipation that this positive trend will persist in the forthcoming quarters. Additionally, the evolving global economic landscape, fueled by the Federal Reserve’s recent interest rate reduction and the approaching 2024 U.S. election, has served to strengthen the overall optimism towards cryptocurrencies.
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2024-10-18 11:33