XRP, Litecoin Lead Rally With 20% Gains, What’s Behind the Surge?
XRP and Litecoin have been around for over a decade and are two of the most popular digital currencies on the market.
XRP and LTC have enjoyed an impressive week, with each asset boasting 20%+ improvements in price over that time.
There’s no one big reason for the gains – rather, it appears to be a combination of XRP and LTC being undervalued paired with positive market sentiment.
It’s been an extraordinary start to 2024 for Bitcoin and the crypto market in general. Despite fairly mediocre macroeconomic conditions – with interest rates still high and inflation not totally under control – the market keeps setting new records.
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BTC’s rally is starting to extend to the altcoin market, with tokens such as Solana and BNB recovering from shaky circumstances. Among the sea of green, two of the industry’s oldest coins are starting to flex their muscles. So what’s behind XRP and Litecoin’s resurgence?
Open Interest Suggests Positive Sentiment After Months of Disappointment
The XRP community is one of the largest in the cryptosphere. When you have such a dedicated and numerous group of supporters, there are naturally high expectations of performance. Unfortunately, the XRP project has been a disappointment for many in the community – at least in terms of price – after winning the first battle in a lengthy war with the Securities and Exchange Commission.
Many predicted that XRP would break out of a multi-year slump after a court ruled partially in favour of the cryptocurrency. While a mini-rally immediately followed the judge’s decision, it was short-lived.
The coin is still a long way off its all-time high in 2018 of over USD $3 (AUD $4.54) but is showing signs of recovery after a 20% surge over the past few days. XRP’s price is now threatening its previous 12-month high of approximately USD $0.81 (AUD $1.23).
There’s no fundamental reason for XRP’s run over the past week – little in the way of news or major upgrades has come out of the developer’s camp. Rather, it seems that the bullish sentiment throughout the crypto industry spilled over to certain underperforming altcoins that have plenty of room for growth.
Given XRP’s stature within the industry, paired with its lacklustre performance since 2018, it certainly fits the bill. Open interest – the number of derivatives contracts open on exchanges – increased by 30%, which is typically a good indicator of investor sentiment.
The same can be said of Litecoin, a Bitcoin fork often considered the silver to BTC’s gold. The legacy coin, developed well over a decade ago, has fallen from a consistent top-10-market-cap asset to barely sitting in the top 20.
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However, a strong last month has seen the price of LTC explode by 46%, pushing the coin back over the USD $100 (AUD $154) mark for the first time since July 2023.
Classic chikun pattern$LTC #Litecoin pic.twitter.com/NUan36HHlZ
— johnez (@johnez_ltc) March 11, 2024
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Filed under: Bitcoin - @ March 12, 2024 1:15 am