Litecoin Outperforms Despite Bearish Sentiment; Here’s Why
Despite facing one of the harshest crypto winters on record, Litecoin (LTC) appears to be holding its own pretty well, as records show it’s faring better than most other cryptocurrencies. This upbeat sentiment can be seen in the Bitcoin hard fork over the past few days.
At press time, Litecoin trades at $77, up by about 8.5% over the past 24 hours. To make matters even better, the cryptocurrency has jumped by over 29% between November 22 and November 30. LTC is also ending November with a 41% advantage, a significant feat considering most other cryptocurrencies closed the month with a red candle.
While there are several factors supporting the rally in LTC, reports have highlighted three factors as the primary catalysts for the bullish trend.
Factors Catalyzing Bullish Pressure for Litecoin
Firstly, with the next Litecoin halving in about nine months, many investors see this as the perfect time to acquire the altcoin, especially with the current negative sentiment trailing the broader market. Reports show that over 60 million LTC tokens have been in cold storage for more than a year, highlighting investors' significant confidence in the crypto asset.
A recent Santiment report revealed that addresses holding between 1,000 and 100,000 LTC had increased their token accumulation rate by 2.71% per day in the last week of November. This indicates that Litecoin is acting against its tight correlation with Bitcoin, which remains under notable bearish pressure.
The second factor is that, with the recent FTX-induced loss of confidence in the market, many expect the US Securities and Exchange Commission (SEC) to take the chance to increase its hunt for cryptocurrencies believed to be commodities. To do this, the commission would likely deploy the Howey Test to determine whether a crypto asset is a security or a commodity. That said, LTC enthusiasts are confident the cryptocurrency will join the ranks of Bitcoin in the commodities category due to their many similarities, including no governing body, no issuer, and being completely decentralized.
The third and final catalyst for the LTC bullish sentiment is Ethereum’s recent transition from PoW to PoS, which displaced all ETH miners. That said, some analysts speculate that a good portion of this mining hardware will find its way to working on the Litecoin blockchain.
Litecoin Price Action
As mentioned at the outset, LTC has enjoyed some bullish price action over the past few days, leaving most of the cryptocurrency market behind (sentiment-wise).
That said, the cryptocurrency is exhibiting difficulty reclaiming the $80 price mark since it fell below the level in early May. Regardless, strong momentum appears to be on the side of Litecoin, especially following a golden cross sighting in the daily chart, suggesting that the $80 mark could be scaled after a few more tries.
LTC Statistics Data
LTC Current Price: $78
LTC Market Cap: $5.6B
LTC Circulating Supply: 71.7M
LTC Total Supply: 84M
LTC Market Ranking: #13
Feeling confident? Trade your idea on LTC now
This article should not be taken as financial advice. It is essential to conduct research before making any investment decisions.