Litecoin Outperforms 100% of Top Cryptos: Cryptocurrency Market Review
The views expressed here are not investment advice and are provided solely for informational purposes. Every investment and every trade involves risk, so you should always conduct your own research before making any decisions. We do not advise investing money that you cannot afford to lose. Finally, the cryptocurrency market’s momentum is normalizing, with most assets returning to their normal price ranges and some performing exceptionally well despite the market’s depressing state.
Litecoin’s 36% jump
LTC has been surprising cryptocurrency investors on the market in recent months, actively breaking out since August. Unfortunately, significant selling pressure negated LTC’s successful market performance, returning it to the trading range it had been moving in prior to the breakout attempt. Finally, on November 2, Litecoin successfully broke out of its three-month trading range, moving toward the local resistance level reflected in the 200-day moving average. On November 7, LTC failed to break through the moving average and fell to the lower range of the trading channel.
Two days ago, bulls continued to drag LTC to new highs, providing more than € 43 million in buying support, laying the groundwork for the rally, which is now being driven primarily by retail investors looking to capitalize on the market’s strongest position. While Ethereum and Bitcoin holders are forced to watch their holdings’ profitability fall below the 50% mark, most Litecoin investors are returning to profit, according to profitability indicators. Despite the prolonged downtrend that Litecoin has been experiencing for the last 560 days, a 5% price increase will put long-term holders back in profit. Such a devastating performance effectively destroyed LTC’s attractiveness among investors, but the situation may change if the cryptocurrency’s explosive price performance continues.
Market is recovering
In the last 24 hours, more than € 50 billion returned to the cryptocurrency market, which is the main reason behind the positive price performance of the majority of assets: Litecoin(LTC), Bitcoin(BTC), Ethereum(ETH), and smaller altcoins are showing solid recoveries across the board.
While there is no fundamental reason behind the return of the market into the green zone, the most likely cause behind the positive capitalization Netflow is the attractiveness of oversold digital assets that bring more opportunities for investors willing to gradually gain exposure to cryptocurrencies. Unfortunately, crypto has a long way to go before reaching pre-FTX price levels. The worst part of the crash of SBF’s empire is the reputational damage to the industry which will be considered even more dangerous for institutional funding. Since the crash in May, institutional inflows to the industry were at shallow levels, and most of them were exposed to various short Bitcoin ETFs that give inventors reverse exposure to BTC.
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