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Litecoin (LTC) has recently completed its most bullish week since June, following a remarkable rise. The “digital silver” registered over 24% gains in the last seven days alone. There’s no main catalyst for the token’s impressive rise. However, its gains come amidst its hash rate reaching a new all-time high during the week.
Furthermore, it has started the week off on a positive note by confirming its partnership with Wanchain. As far as the network’s interoperability is concerned, this news is a big win.
Litecoin Joins Polygon To Lead the Top 20 Tokens In Gains
In the previous week, Litecoin has gained 24%, propelling it into the top 20. These gains come despite other tokens in the top 20 league registering substantial losses and few gains. For instance, Bitcoin, the mother crypto, only gained around 1.65% in the past week, per CoinMarketCap metrics. In fact, no token in the top five positions recorded up to 5% gains. Besides Litecoin, Polygon is the other top-20 token with massive gains in the previous week. The Ethereum layer-2 protocol, MATIC, was seen showing gains of 40%.
LTC began a run on October 21 after reaching a low of $49.55. But November is setting up to be a bullish month for the altcoin. Since the beginning of the month, Litecoin has seen five consecutive days of rising prices. On November 7, it set a new intraday high of $73.29. This was the highest price since May of this year.
Most of LTC’s gains came on November 1st when the coin registered 15% gains in a single day. The main catalyst was MoneyGram’s announcement that it’d allow U.S.-based customers to purchase LTC and other cryptos in its app.
Litecoin’s price is currently trading at above $67. | LTCUSD price chart from TradingView.com
Can LTC Keep up The Momentum?
Considering its present position, LTC’s upward trajectory might soon level off. This is because the cryptocurrency has already reached extreme overbought levels during its recent bull run. At the time of publication, the RSI leading indicator for the token was also signalling a possible reversal.
Looking closely at its price activity suggests further room for selling pressure. For instance, after hitting rock bottom in June, the price of litecoin has been steadily climbing inside an upward channel. In the final week of last month, it retested the line of resistance, raising the prospect of a reversal to the downside.
In fact, in the past week alone, Litecoin has gained as much as 25. Its efforts to break out of the lower zone are likely diluted by traders grabbing quick profits. However, the absence of bullish pressure will make this fragile and allow the bears to gain ground. To put it another way, this is a fantastic chance for short sellers.
LTC Mining Difficulty Reaches New High
According to Litecoin Foundation, mining difficulty has set a new high of under 18 million hashes. As of Friday, November 5, the mining difficulty for Litecoin increased to 17.99 million hashes at block 2,363,707.
The spike in Litecoin’s mining difficulty suggests that additional miners have joined the network, increasing competition and making it more challenging to profit.
Featured image from Pixaby and chart from TradingView.com