Litecoin (LTC) is now trading on Global Digital Asset Exchange, a subsidiary of Coinbase. Charlie Lee, the Coinbase director of engineering and Litecoin founder, hinted at the news yesterday with a tweet..
Today as people were waiting for confirmation of the rumour, Charlie faked everyone out with some trolling moments before the actual announcement…
The litecoin markets responded to the initial rumour with 10% price gains and an increase in trading volume.
Poloniex appears to be the market mover, with LTC rising up to third place. Poloniex took a price lead over every other exchange with a high of .00763 BTC. Today is showing record breaking volume for LTC on Poloniex. BTC-E is usually the dominant exchange for the LTC/BTC markets.
Litecoin has been on a bear trend since the summer pump of 2015 and has been consolidating at bottom support.
Listing LTC on a major exchange when the price was sitting at low support is the perfect storm for a potential bull run. Fundamentally this doesn’t change anything for Litecoin on a protocol level but it does open up access to more traders.
If the volume of LTC persists, then this rally has the potential to turn into a trend reversal. There are two major points of resistance around 0.007 and the 0.0095-0.01 area.
Last year’s LTC bull run was lead by Chinese exchanges OKCoin and Huobi, with LTC/CNY as the dominant market. At the moment, litecoin is facing mid range resistance on the CNY charts, with 28 CNY as a potential breakout zone.
LTC is available for trading on most Chinese exchanges, which may help add fuel to the fire.
There’s an old trading maxim that states “buy on the rumour and sell on the news”. Now that the news is confirmed, we have yet to see if the price breaks 0.007 for a real bull trend or if this is just a one off pump.
Trading volume is a good metric for determining the longevity of the trend, since it shows the interest level of market participants. Has the sleeping giant woken from its year long slumber? Only time will tell.