Litecoin jumped to the highest level in ten months (since Sept 2014), gaining over 50% on BTC-e, being the top gainer from cryptocurrencies on Tuesday.
Litecoin was able to jump above $4 level, reaching an intraday high at $4.67 earlier on Tuesday and easing back, trading now at $4.145 at the time of writing. This is a remarkable rally, compared to prices before May, when Litecoin was seen below the $2 level.
As for the causes of this rally, we don’t see any strong fundamental reasones, only slight boost from worries over Bitcoin’s block size limits, which is slowing the cryptocurrency’s move from an experimental phase toward large adoption. Nevertheless, such speculation is expected to be only short-term and Litecoin has no relevant fundamental background, making it less vulnerable to such problems as Bitcoin. Despite possible short-term gains again, we expect Litecoin to correct back below $4 level soon.
Even Bitcoin has already hiked over 6% on Tuesdayto over $260, but such gains have been successfully overlooked due to impressive jump of Litecoin. Albeit the numbers are impressive, litecoin’s drops in percentage tend to suffer more as bitcoin as well. Nevertheless, LTC/BTC rate has reached 0.0168, what is the highest level in more than 1 year.
Most of the litecoin or bitcoin traders remember late 2013 trading as the top period of cryptocurrencies and current levels of bitcoin or altcoins reached still only 75%-90% of their previous levels. Nevertheless, as it comes after such speculative era, all the cryptocurrencies sufferred from strong sell-off later during the year, correcting from previous highs.
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