Litecoin price steadies as correlation with Bitcoin hits 0.88

The price of Litecoin has experienced a tremendous increase in the last few months. Starting June last year, Litecoin has surged over 90% while BTC is only up 1%. The difference between the prices of the two popular proof-of-work coins continues to widen. Prices rose to a high of $93 this month, their highest point since May 9. The price has jumped more than 100% from its 2022 low.

Bitcoin and Litecoin correlation

It’s not clear why Litecoins and the Bitcoin correlation have divorced in recent months. In the past, the two, along with Bitcoin Cash, had one of the closest correlations. This means that they all track each other.

According to Into the Block, the correlation between the two fell from 0.92 to a low of -0.17 on November 7. But recently, it seems that this correlation number is getting closer as it is at 0.88. A correlation coefficient close to 1 is usually a sign that the two assets are moving in the same direction.

A possible reason for outperforming Litecoin in price is that the on-chain numbers have been relatively strong in recent months. Mining activity, in particular, has been quite strong, with hash rates soaring to the highest levels on record. The hash rate is an important number that measures the health of a network. A higher number is a sign that the activity is going well.

Another on-chain metric is that historical volatility has dipped in recent days. It peaked at 106% in November and then fell to its current 42.6%. In fact, a closer look at the chart shows that this volatility slide started as the coin started to gain momentum. Lower volatility numbers are usually a bullish signal for an asset.

Litecoin price prediction

LTC chart by TradingView

The daily chart reveals that the LTC price has been in a strong bullish trend in recent months. On the way up, the coin formed an ascending triangle pattern with the upside at $67.12. It managed to cruise above that level in November, December, and January. The coin has also moved above its 25-day and 50-day moving averages.

A closer look shows that it has also retested support at $84.60, which was the high point on December 6. Hence, the coin is likely to experience a bullish break as buyers target the key $100 level, as we wrote. here.

How to buy Litecoins

Binance

Binance is one of the largest cryptocurrency exchanges in the world. It is more suitable for more experienced investors and offers a large number of cryptocurrencies to choose from, over 600. Binance is also known for having low trading fees and many trading options that its users can take advantage of, such as; peer-to-peer trading, margin trading and spot trading.

Buy LTC with Binance today

OKAY

OKX is a top cryptocurrency exchange that offers more than 140 cryptocurrencies to invest. OKX takes customer security very seriously, they keep almost all of their clients’ funds in cold storage, and the exchange has not been hacked. Moreover, the exchange offers very low fees and customers can even use their crypto as collateral for loans on the platform.

Buy LTC with OKX today

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