- LTC/USD pair posted more than 16% gains in the last 24 hours.
- Bullish calls for Litecoin crossing $1000 are growing stronger.
- But LTC is heavily overbought.
JAIPUR (CoinChapter.com) – Litecoin, Bitcoin’s lightweight counterpart, went vertical in the past 24 hours. The 14th largest cryptocurrency posted nearly 20% gains as traders raised bids en masse to anticipate further upsides.
LTC’s rally to $257 attracted a flurry of bullish reactions on Crypto Twitter. Most of them expect the silver to Bitcoin’s gold to cross $1,000 per token in the near term.
That is because LTC followed a 72% correlation with BTC for the past year, according to Crypto Watch. As a result, the crypto-asset would continue to track the top digital asset’s market trajectory and post gains whenever BTC rallies.
While the proof-of-work token does stand to chart further upside moves from a technical standpoint, fundamental pointers also indicate that the latest rally is just the beginning.
LTC adoption on Bitpay, a crypto-based payment processing service, surged to new highs. The digital asset became the second most transacted crypto token amongst merchants.
“Litecoin is now the 2nd most transacted #crypto with @Bitpay merchants!
Rising in use only months after being added to the platform #Litecoin $LTC #BitPay making it easier to #PaywithLitecoin”the Litecoin team announced on Twitter
Bitpay facilitates over 60,000 consumer transactions (involving Bitcoin, Ether, Litecoin, etc.) every month.
Also, Australia’s leading consumer bank Commonwealth Bank became the first financial institution in the country to offer crypto buying, selling, and holding facilities to customers on the CommBank app.
“The pilot will start in the coming weeks and CBA intends to progressively rollout more features to more customers in 2022. CBA will provide customers with access to up to ten selected crypto assets including Bitcoin, Ethereum, Bitcoin Cash and Litecoin.”read an excerpt from the official announcement
Commonwealth Bank partnered with cryptocurrency exchange Gemini and blockchain analysis firm Chainalysis to design a crypto trading and custody service that users would leverage to access digital asset markets. Apart from rising adoption on crypto payment processors, and banks, LTC also looks to find increased uptake in daily consumer transactions through a Visa-powered debit card.
Users would be required to register for a Litecoin card account, deposit LTC into a specific wallet address.
Then they would have to clear a regular KYC check and receive a virtual Litecoin card. The Litecoin card would enable the spending of the underlying asset at nearly 50 million digital storefronts that use Visa as their payment processor.
LTC/USD Technical Setup
The LTC/USD pair retracted after registering an unstoppable 20% rally. Traders grew concerned about Litecoin’s overbought state post the rise and hence showed up to bok profits off the upside move.
Nonetheless, bullish sentiment remains, indicating that long-term believers intend to push the token past $400. A cup and handle technical setup is about to take shape on the weekly chart. A cup and handle represent a technical formation where the cup (price downtrend and uptrend) follows a “u” shape and the handle has a slight downward drift.
Traders across all financial markets leverage the pattern to spot buy opportunities to log long-term profits. With the cup in place, the LTC/USD pair would successfully form a handle post a retracement to $235, followed by an upward move.
The resulting rally would lead to the pair taking out the $325 resistance first and $412 next, opening doors for the climb towards $665.
Whether LTC will rally further and hit $1,000 remains to be seen.