In the midst of its ongoing bull run, Grayscale has increased its Litecoin Trust holdings by 740%. LTC is currently trading around the $225 USD range at the time of writing.
Litecoin has performed extremely well during this bull run, but it has seemed to lag behind its top-10 peers. It has been traded at a multi-year high of $240, but for now continues to seek support above $220.
Litecoin eyes holding the support level of $220 as it looks to breakout Source: LTCUSD on Tradingview.com
Despite the slight retreat, Litecoin looks to be poised for a bullish upswing towards a new all-time high. Mimicking that of Bitcoin and Ethereum. Grayscale Investments increasing exposure to Litecoin only makes the run that much more likely.
Increased institutional investment has been largely viewed as a major component for this ongoing crypto bull cycle over the last couple of years. Large money management firms have been known to buy a large volume of cryptocurrency. With Grayscale Investments Holdings being chief among them. This ultimately adds to the buying pressure helping to set the price to higher highs.
Grayscale operates other trusts, most notably ones for Bitcoin and Ethereum. The two largest cryptocurrencies, both of which have benefited from increased demand by the fund management firm. In the case of Litecoin, data from Grayscale shows that the Litecoin trust increased by around 1.4 million LTC.
Litecoin Benefitting From The Grayscale Effect
Much like Bitcoin and Ethereum benefitted from the ‘Grayscale effect’. Litecoin is likely to garner momentum towards all-time highs above $400.
When Grayscale added additional Bitcoin to its trust in January, Bitcoin rallied by nearly 35%. Likewise, Ethereum saw a spike of 42% and reached new all-time highs after Grayscale added $76 million worth of ETH to its trust on February 2.
Litecoin is looking forward to breaking above the crucial resistance. Which is likely to catapult it to $300 before making advances toward $400 and the technical picture shows that buyers have the control. The Moving Average Convergence Divergence (MACD) moving higher above the midline is proof of this.
But support for Litecoin above $220 is crucial because if that is lost, overhead pressure will increase toward the buyer congestion at $200. If Litecoin fails to hold break above the $250 crucial hurdle, the bullish outlook on LTC will be completely invalidated.
Corey has been involved in media and writing since graduating from the illustrious Howard University with a degree in Broadcast Journalism. While relatively new to the cryptocurrency world, he has been writing since 2012 with most contributions coming in the sports world on websites such as LakersNation.com and DodgerBlue.com. Corey is also an avid sports fan who closely follows the Lakers, Cowboys, Dodgers, WWE, and UFC.
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