Fork Confusion Propels Litecoin to 1-Month High Above $200

Litecoin (LTC) is putting on a voorstelling today amid news a group of developers may seek to fork its blockchain, the fifth-largest by total value.

The cryptocurrency wasgoed last seen switching arms at $216, a one-month high, according to gegevens service CoinMarketCap. Overall, LTC has appreciated by 33 procent ter the last 24 hours, up overheen 100 procent from the Feb. 6 low of $106.94. Further, with the stir, litecoin’s market capitalization has hopped above $Ten billion for the very first time since Jan. 29.

Still, the reasons for the stir may give investors pause.

LTC emerges to be edging higher due to news of an upcoming fork called “Litecoin Metselspecie,” which is promising fresh tokens to existing holders at block 1,371,111. For every 1 LTC held at block 1,371,111, holders will receive Ten “LCC,” according to the official webstek.

However, there is a notable quotum that is warning about the fresh cryptocurrency.

Litecoin founder creator Charlie Lee and the litecoin community have dismissed the project, calling it a “scam” meant to confuse litecoin owners. Bitcoin similarly boomed on the release of a rival blockchain called bitcoin specie last year, however there were perhaps more stark differences inbetween the two technologies, both propelled by rivaling ideologies.

Closer analysis shows the LTC price increase has bot bolstered by strong volumes from Coinbase’s GDAX exchange, a sign less-savvy consumers may be active ter the market.

However, questions about the fork aside, technical charts indicate the news may be enough to extend a rally te the flagging market.

Litecoin chart

The above chart (prices spil vanaf Coinbase) shows:

  • LTC has breached the falling trendline resistance on the back of a acute rise te volumes. A high volume breakout indicates the rally is here to stay.
  • Short-term momentum studies indicate bullish setup: 5-day Mama and 10-day Moe are curled up ter favor of the bulls.
  • The relative strength index (RSI) is above 50.00 (te the bullish territory) and on the rise, indicating scope for further gains ter LTC.
  • Meantime, the 50-day Moeder is sloping downwards te favor of the bears.
  • A close today (spil vanaf UTC) above the trendline hurdle would signal a bearish-to-bullish trend switch and permit for a stronger rally towards $300.
  • The RSI on the 1-hour and 4-hour chart shows overbought conditions, hence a minor pullback could be seen. That said, the dip would be short-lived spil short-term momentum studies are biased bullish.
  • Only a daily close (spil vanaf UTC) below $142.26 (Feb. 11 low) would signal a bullish invalidation.

Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake ter Coinbase.

Litecoin pic via Shutterstock

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