It is not every day that we see such a rise in LTC/BTC value when the markets are struggling- especially when Litecoin itself has not escaped the downturn.
But LTC/BTC has actually risen by over 10% during the past week, hitting a peak of 0.0115 and currently trading at 0.011 on BTC-e. Responsible for the rise has been the continuing decline in bitcoin value, which today hit another 3-week low of $319.
Litecoin, while experiencing a net loss during the same period- and remaining within striking distance of its 2014 low- has discovered support at $3.50. This was most recently tested again during the past 48h when it slid as much as 6.5%.
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Over the past 24h, however, the pair has signalled the possible start of a reversal off its peak. It dropped by over 6% to below 0.011, then retracing most of its losses in a pattern mirroring that of its ascent. Ultimately, the pair will be partially yanked in the directions dictated by the respective fiat-based values of its constituents.
Also, as pointed out previously, the market’s most recent declines have been gradual in nature. LTC is more accustomed to amplifying BTC price action during major moves and panic selling, after which the trend has been for BTC to outpace LTC in its retracement. The real test for LTC will be on the next “really bad day”, where its $3.50 support level and 2014 lows may be put to the test.