Litecoin (LTC) has been a relatively stable coin throughout since the beginning of the bull run that initiated in December 2020. The cryptocurrency had disappointed investors as it did not go as high as expected given the performance of other major cryptocurrencies. But investors were able to find a silver lining in the performance of the coin. Many traders turned to Litecoin as the market volatility invoked fear among them. Litecoin was utilized as a safe haven for investors.
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The relatively smooth performance of the cryptocurrency also brought it under the spotlight of institutional investors. Among the investors, Grayscale took the lead. Grayscale – the investment management firm – has added a whopping number of the cryptocurrency to its Litecoin Trust. In the past month, the investment firm bought over 174,000 Litecoin which is approximately 80% of the total Litecoin mined in February.
The Trust allows investors to get their stake in the cryptocurrency without going through the troubles of actually buying Litecoin. However, investors have to pay a handsome premium in order to buy cryptocurrencies through Grayscale Trusts. Historically, the Trusts have operated at a premium of around 20% to 30% – which is high as it is – however, Litecoin has gone as high as trading at a 1,800% premium. The whopping premium makes the cryptocurrency priced at $319 if to be bought through the Trust.
The phenomenal rise in the price of Grayscale’s Litecoin holdings is accredited to the upcoming privacy upgrade. Mimblewimble – named after the Harry Potter franchise – will allow the cryptocurrency to conduct transactions without revealing details such as sender’s or receiver’s addresses or the amount of the transaction. The opt-in privacy feature can help impact the adoption of the cryptocurrency greatly.
Earlier the week, Ebang International Holdings Inc. announced the launch of Litecoin mining along with Dogecoin. Given the increased interest in the cryptocurrencies, Google Finance has also added a tab about Bitcoin, Ethereum, Litecoin and Bitcoin Cash.
Litecoin achieved its bull-run high in mid-February at $245. Nearing its all-time high of $360, investors were hopeful that the cryptocurrency may be underway skirting close to price level. However, disappointment was in the air when Litecoin, under strong market correction, crashed to $160. The cryptocurrency continued having fluctuations but stayed in under $200.
The market sentiment for the cryptocurrency is bullish as most of the technical indicators are giving out a signal of buy. Of the 26 technical indicators, five stand at a sell position with nine at neutral and twelve indicators are giving out sell signal.
A trader has identified the cryptocurrency to be at a breaking point of a symmetrical triangle formation. Per the trader, Litecoin has broken to the upside from the formation and can possibly be underway hitting the price target set at $238. However, parallel to the price target also lies the strong resistance level established by the bull-run high of the cryptocurrency.
According to the predictions of Long Forecast, Litecoin is expected to be headed upwards during the year 2021 and stabilize at a price level in the range of $230-$290. Given the recent developments, the continuations of an upward trajectory for the cryptocurrency seems like a plausible possibility.