Litecoin, described often as the ‘silver to Bitcoin’s gold,’ has recently taken the market by surprise and announced itself as a ‘meme coin’.
The announcement was made in a funny social media post where the creator said, “I now identify as a meme coin.” It attracted the attention of the crypto community almost immediately.
The original meme coin, Dogecoin, also reacted positively to the change, embracing Litecoin and proposing a new mascot for the change.
This announcement triggered a market response, and LTC’s price rose by 15% in hours. Subsequently, the cryptocurrency traded between an intra-day high and low of $82.25 and $84.35, respectively.
The meme coin status appears in the context of the overall growth of meme tokens. PEPE and WIF recently showing substantial growth and being listed at Coinbase and Robinhood.
The trading volume for LTC also spiked by 33% which shows retail and institutional investors’ interest in the coin.
Bullish Signs as Litecoin Enters Meme Coin Space
After the announcement, there was a boost in the bullish sentiment in Litecoin, according to analysts.
Market participants seem rather interested in Litecoin’s playful change. Some suggest that this might bring new investors interested in meme coins.
The overall market for meme coins has been quite volatile. Coins such as DOGE and PEPE are shooting up in value.
Analyst have also noted that if the current trend continues, Litecoin might experience further growth and potentially climb to $300.
Based on technical analysis, Litecoin has recently formed a ‘golden cross’ indicator, which is a bullish pattern when the 50-day moving average crosses over the 200-day moving average.
This pattern is normally used to indicate the preparation for a price rise, so there is a possibility for Litecoin to continue rising.
Furthermore, Litecoin has recently emerged from what could be described as a long-term bearish trendline.
It is viewed as a bullish breakthrough after many years of consolidation.
Increasing Market Activity and Long-Term Potential
Additionally, coinglass market data reveals the increasing adoption of Litecoin as a currency.
As reported, the trading volume of Litecoin derivatives has grown by 110.71% over a day and stands at $1.3 billion. LTC open interest in futures has also risen by 7.73% to $308.13M.
These trends indicate that traders are preparing for further price action, backed by the meme coin launch and increasing investor interest.
Analyst Trade Pro (@TradePro16 on twitter) pointed to Litecoin’s change in trajectory, saying,
“#Litecoin #LTC has changed its behavior and is now more bullish. These are the first signs of a new up trend.”
Trade Pro also added that the ETF application of Litecoin and low miner reserves could help push the price higher.
“With Litecoin miner reserves being depleted to levels not seen since 2012, it could be a wild ride for Litecoin this cycle as money flows out of Bitcoin into altcoins,” Trade Pro added, emphasizing the potential for a sustained rally.
Furthermore, IntotheBlock data shows that short-term investors have been gradually buying more LTC. There was a 31% rise in holdings in the last month.
Accumulation by short-term holders is sometimes an early sign of big price rises or market bottoms. It shows that there is increased belief that Litecoin will appreciate.
This trend is in line with Litecoin’s recent shift to the meme coin category. It indicates that both new and old investors are favorable to this change.
