Litecoin [LTC]which is often considered a loser, last week showed a commendable performance compared to other players in the market.
It is interesting to note that Litecoin was included in the “Top 5 Altcoin” list published by the Evening Standard, which certainly adds more value to the blockchain.
“The five best altcoins of 2022” – @EveningStandard https://t.co/VuTNfZCjb6
– Litecoin (@litecoin) 1 September 2022
The list mentioned some of the cryptocurrencies in 2022 that can be seen as alternatives to the king of cryptocurrencies, Bitcoin [BTC]. These altcoins can be considered for investment purposes or they can be a choice for diversifying investment portfolios.
In addition to Litecoin, other cryptocurrencies that made it to the list include Ethereum [ETH]Cardano [ADA]Solana [SOL]Bitcoin Cash [BCH]and Dogecoin [DOGE]which was the only meme coin on the list.
The secret of LTC’s success
While most cryptocurrencies have struggled to rise since the end of August, Litecoin managed to post positive gains over 24 hours and seven days. At the time of writing, LTC was trading at $ 57.24 with a market cap of $ 4,068,169,109.
The performance increase was not a surprise, as several parameters on the chain supported the increase. For example, LTC’s Market Value Realized Value (MVRV) ratio quickly gained an uptrend along with its price.
The surge in prices was also supported by high volumes, further confirming the legitimacy of the episode.
Interestingly, the number of receiving addresses has increased over the past week. It was a positive sign for LTC as it indicated investor confidence in the token.
Additionally, LTC’s social presence has also increased over the past week as its trending words’ ranking has significantly improved. This indicated a greater interest of the community in the coin.
Earnings from critical metrics on the chain coupled with development activity have suggested better days for Litecoin.
Litecoin’s four-hour chart also looked promising as a bullish pattern formed, further strengthening the chances of a rally in the coming days.
LTC has shown resistance at $ 57.8, but there may be a breakout on the charts due to positive on-chain parameters and an ascending triangle bullish pattern.
The 20-day EMA (green) has reversed the 50-day EMA (red), which is a bullish sign. Additionally, the Relative Strength Index (RSI) also rallied, raising the possibility of a northward breakout.
However, the Chaikin Money Flow (CMF) showed a bearish divergence as it moved lower. The price and the RSI have seen increases, which may be limiting LTC from climbing further.