Not XRP or SHIB but this alternative could be your choice for portfolio diversification

Litecoin [LTC]Which is often considered an underdog, it showed a commendable performance last week compared to other market participants.

interesting, Litecoin Featured in the “Top 5 Altcoin” list published by the Evening Standard, which definitely adds more value to the blockchain.

The list mentioned some of the cryptocurrencies of 2022 that can be considered as alternatives to the king of cryptocurrency, Bitcoin [BTC]. These alternative digital currencies can be considered for investment purposes or can be an option for diversifying investment portfolios.

Apart from Litecoin, other cryptocurrencies that made the list include Ethereum [ETH]Cardano [ADA]Solana [SOL]Bitcoin Cash [BCH]and Dogecoin [DOGE]That was the only commemorative coin on the list.

The secret behind the success of LTC

While most cryptocurrencies have struggled to rally since late August, Litecoin managed to post positive gains over the course of 24 hours and seven days. At the time of writing, LTC is trading at $57.24 with a market capitalization of $4,068,169,109.

The performance increase was no surprise, as several metrics in the series supported the rise. For example, the realized value of the market value of LTC (MVRV) quickly trended higher along with its price.

It also supported massive price increases, which further legitimized the episode.

Source: feeling

Interestingly, the number of receiving addresses has increased over the past week. It was a positive sign for LTC as it indicated investor confidence in the token.

Source: Glassnode

In addition, the social presence of LTC also increased in the last week as the ranking of popular words improved significantly. This indicates an increase in public interest in the currency.

Gains in significant on-chain metrics combined with development activity hinted at better days ahead for Litecoin.

Source: feeling

looking forward

The 4 hour chart of Litecoin also looked promising as a bullish formation formed, which enhances the chances of a rally in the coming days.

LTC Showing resistance at the $57.8 mark, but the breakout on the charts could be due to the positive metrics on the series and the ascending ascending triangle pattern.

The 20 day moving average (green) has reversed the 50 day moving average (red), which is a bullish signal. In addition, the Relative Strength Index (RSI) is also higher, increasing the risk of a breakout to the north.

Source: TradingView

However, Chaikin Money Flow (CMF) showed bearish divergence as it declined. The price and RSI record gains, which may limit LTC From climbing even further.

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