Bitcoin, Ethereum, and ADA recorded massive gains in the last 24-hours in the early hours of Monday, trading at above $47k, $3k, and $1.1. However, it’s Litecoin with all the attention after posting an impressive and surprising 27.54% jump on the price chart in the last 24 hours.
On most occasions, digital assets move in tandem with the price of BTC. When BTC rises, others follow, just like what happened in the last 24 hours. However, experts think differently about the real reasons for the surprise incline of LTC.
Japan’s New Regulation Believed to Be the Factor
It’s no surprise that merchants and regulators hold LTC in high esteem and respect it as BTC and ETH. This is because LTC has low volatility compared to BTC. The coin may be less popular than bitcoin and ether, but it remains a favorite asset.
Reports from Japan explain that Litecoin would be included in the list of coins that would be exempted from being checked each time an exchange registers it. The Virtual and Crypto Assets Exchange Association in Japan is expected to release a list of about eighteen virtual currencies that would be excluded from being screened this week. Amongst the cryptocurrencies included are no other than BTC and ETH.
The inclusion of Litecoin in the list was a surprise move to crypto users. Analysts explain that the “Silver” label favored Litecoin and could be why many crypto-based businesses accept the coin as a mode of payment.
To confirm the popularity of the coin, a report from The Guardian stated that LTC, alongside DOGE and XRP, was amongst the top virtual currencies used for sports betting. Like BTC, LTC has built an active community of investors over time, which has sustained the price momentum of the coin.
Growing Investors Activity Could Maintain the Altcoin’s Bullishness
A recent Santiment data shows that holders have been active on-chain. More than 200,000 investors have been transacting in the last few months. An increased investor’s activity, coupled with the current value could boost the altcoin’s value.
Also, the optimism around the coin, the core factor for the LTC rally, could again play in the coin’s favor. These factors can strengthen the coin’s position.
Based on this publication, Litecoin trades at $124, escaping the critical support of $123. The current rally also means that the coin has breached the long downtrend in the last ten months. It’s critical that LTC maintains this pace or face a relapse, which would put the coin back in the red zone.