Key Takeaways
- While BTC and other altcoins slowly crash, LTC surges with a daily uptrend of over 7%.
- The coin is currently trading at $127 and is ranked #12 on its market capitalization, estimated to be about $9.6 billion.
- If Litecoin pushes past the overhead resistance of $140, it could potentially hit $150 by the end of the first quarter of 2025.
With GBTC plummeting with each passing day, the broader market seems to go down with it. However, in these bearish days, one currency is defying all its expectations and continues to rally against the bearish trend in the market. Litecoin, the cryptocurrency derived from a fork in Bitcoin is currently the only token in the top to register a double-digit gain in the past 24 hours.
This article will explore this latest development in the market and check whether it will continue in the coming days as well. Furthermore, we will also take a brief look into the correlation between the 2 coins.
Litecoin Rallies As The Market Slowly Crashes
Litecoin is one of the top dogs in the crypto world and has the most potential compared to others. After registering a brief fallback below the 100 and 50-day Moving Averages, the coin is making a tremendous comeback in the market, while the rest of the cryptocurrencies struggle following the Bitcoin decline.
The coin is maintaining its bull rally after experiencing a dip on the 25th of February, which saw it plummeting to $107. After this dip, the investor sentiment surrounding the token reversed with various investors “trying to buy the dip”, pushing it to a V rally in the market. The coin is currently trading at $127 registering an uptrend of almost 5% from the previous day.
Correlation Of BTC And LTC Diverges?
The asymmetric correlation of LTC and BTC existed for a long period. This means that every time BTC’s price increases or decreases, LTC tends to follow suit. As BTC is currently on a “bearish trend”, LTC should be also on a dip. But, that’s not the case here, indicating a potential divergence in the correlation between the 2 cryptocurrencies.
Generally, correlation tends to show for the long term, so we can’t confirm its divergence as of yet. However, if this divergence tends to happen, then it would mean that LTC is attracting more investor sentiment and demand in the market. It could also provide investors with many trading opportunities from which they make huge profits.
LTC Chart Shows Asymmetric Rally: OI Spike 10%
The current market performance of Litecoin indicates an asymmetric rally compared to the rest of the market. This has prompted most LTC traders to maintain a clear directional bias. The various data collected from the market depict that the open interest in the LTC futures and options is considerably peaking at $140.
During the recent correlation of the LTC token, its IO (Open Interest) registered a drop of about 40%, attaining a value of $525 million. This rapid downward spiral ended with the recent rally, which saw the OI spiking by over 10% alongside the coin’s price. This growing interest depicted that most of the traders are going along with the famous crypto rather than opting for short-term profits.
Can LTC Hit $150?
If you look into the price chart of the LTC token, you can conclude that the strength of the price movements of LTC is slowly increasing, and a candle that closed below $138 marks its highest ascend. Even with all this rally, the coin still failed to shove past the overhead resistance of $140.
However, if the coin manages to break past this $140 point driven by increased market adoption and the latest updates in the crypto sector, it could go on a follow-up rally. Market analysts and industrial experts claim that this could happen within the first quarter of 2025 with the coin hitting a high of $158. For further market updates regarding the matter, stay tuned.
