The cryptocurrency market finally saw some love on Tuesday, with Litecoin leading the way.
Litecoin saw a 15% gain following days of consolidation around the 118 support level. It briefly tested the 137 resistance level before pulling back a bit towards the end of the trading day. This level is important because it has acted as a support level twice before, once on March 18th, and once before that on January 11th.
While the general bullish sentiment in the cryptocurrency market helped Litecoin advances, the reason why it became the winner of the crowd could be due to a Reddit Ask Me Anything session with Abra, a high-profile crypto startup backed by American Express.
During the session, Bill Barhydt, CEO of Abra, explained his reasons for switching to Litecoin for smart contracts. He said Abra has gone with Litecoin as the second asset class, after bitcoin, for their smart contract investing solution for 3 primary reasons: First, its commitment to bitcoin compatibility. Second, because of its slightly better scalability than bitcoin in terms of block size and block times. And finally due to its mining fees which are primarily a function of #2 although this is more of a short-term benefit. He expects mining fees to skyrocket if Abra successful.
Abra has raised $40 million in funding so far, including an undisclosed amount from American Express, Fidelity’s venture capital arm, and Foxconn, the Asian manufacturer of parts for Apple.It also recently expanded its offering from bitcoin and Ethereum to its current suite of 70 crypto and fiat currencies earlier this month.
If Litecoin is able to continue its new bullish sentiment, we could see a potential Double Bottom reversal chart pattern which could take the digital currency back up to the 50% Fibonacci retracement level and February high of $250.
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