It’s no wonder that LTC prices hit an all-time high on Monday. As explained in our previous Litecoin price forecast, investors are unraveling their post-fork positions in Bitcoin and dumping some money back into second-rung cryptocurrencies like LTC and XRP.
This is evident in Litecoin’s depreciation against Bitcoin right after the fork. At the time, one LTC coin was trading between 0.015 and 0.016 BTC coins, a significant premium to the LTC/USD exchange rate. It later fell to 0.01000650 BTC.
The rubber hit the road on around August 15, and since then, the “silver to Bitcoin’s gold” has been on the rise, scoring net gains on a pretty regular basis.
Yesterday, for instance, Litecoin posted an 8.46% gain to $63.88.
This, in addition to the 9.34% that LTC scored against Bitcoin, reveals a strong correction in the same vein as what was described on this website last week. A reverse-rotation from BTC to Litecoin was bound to spur on investment, but the question remains: “How much?”
Well, if Litecoin news follows the example set by Ripple, then most of the gains could be erased within a few days. Both rallies were sparked in part by aggressive South Korean traders, many of which routed trades through an exchange called Bithumb.
XRP went through something similar last week, where it nearly doubled in value before paring back most of the gains. Litecoin might be on a similar track, although it has yet to achieve returns on that scale.
Keep a close eye on the quantity of Litecoin changing hands. Trading volume was about $790.0 million at last count, much more than when LTC tokens were trading sideways. While it’s hard to untangle correlation from causation, I infer that positive trading volume and positive returns in the Litecoin price are related.