Litecoin was trending larger on Saturday in opposition to an in any other case bearish intraday narrative within the total cryptocurrency market.
The seventh-largest crypto by market cap closed above its seven-week excessive to hit $72.72. The robust transfer upward introduced Litecoin’s intraday rise to greater than 6 %. On the similar time, its positive factors this week notched as much as 36.25 % (knowledge from BitStamp).
Nothing Pumped Litecoin
Elsewhere within the cryptocurrency market, cash underwent a light corrective motion. Prime belongings, together with bitcoin, XRP, and ether, had been at finest steady, exhibiting very gentle draw back behaviors with their uptrends cooling-off. In the meantime, Binance Coin and Bitcoin SV fell within the vary of 0.5-1.5 %.
However, Litecoin’s comparatively engaging upside got here on the backs of nothing. As a blockchain venture, the asset lacked fundamentals to justify its short-term bullish prospect. That can be alarming given Litecoin’s 75.48 % decline between June and December – particularly after its halving final 12 months.
However analysts assume the leap is extra technical. Dealer Crypto Dude noticed the transfer as a breaking of a medium-term descending channel, stating that Litecoin is now heading upward to type new peaks.
— CryptoDude (@cryptodude999) January 30, 2020
Even in opposition to bitcoin, Litecoin is spectacular, stated one other outstanding market analyst Scott Melker after noticing the pair LTC/BTC heading larger by 17.05 % this week.
Bitcoin Rally Forward?
Willy Woo, who’s companions with US-based Adaptive Capital, stated in earlier January that Litecoin is “very bullish,” explaining that the cryptocurrency’s on-chain exercise is in a more healthy form.
The favored blockchain analyst added that Litecoin’s uptrends had been main indicators of bitcoin’s upcoming bullish momentum. That stated, every time the altcoin undergoes a value rally, it later follows the same leap within the bitcoin spot and derivatives market. Excerpts:
“Utilizing on-chain investor exercise, which supplies a learn of the place this will go; LTC is already very bullish, whereas BTC remains to be consolidating round an early bullish swing,” stated Mr. Woo. “In a nutshell, I’m anticipating a bullish run in BTC lead by LTC as a affirmation sign.”
One other outstanding analyst Loma highlighted bitcoin’s bull run last year between April and June that came after similar upside moves in the Litecoin market. Within the first quarter of 2019, the LTC-to-dollar alternate charge was up by 179 %.
“What if Litecoin is main Bitcoin once more prefer it did final 12 months,” famous Loma.