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Why Litecoin Popped More Than 13% Today

By Chris MacDonald – Nov 10, 2021 at 4:51PM

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Part of the reason may be that a notable cryptocurrency analyst set an optimistic price target on the token.

What happened

Among the numerous cryptocurrencies that have been surging of late, Litecoin (LTC 3.48%) is certainly grabbing a lot of attention. On Wednesday, it rose by more than 13% at its high point, and is up approximately 25% over the past 48 hours alone.

These sorts of moves aren't uncommon in the cryptocurrency world. However, when momentum-driven rallies like this take place, investors still take notice. 

Phone in front of screen showing market data

Image source: GETTY IMAGES.

So what

Wednesday's gains appear to be a continuation of Tuesday's momentum, driven by the announcement that AMC Entertainment (AMC 11.84%) would soon be accepting Litecoin (among other tokens) for purchases at its chain of theaters. Other major cryptocurrencies rallied on this news as well.

However, some analyst price targets for Litecoin came out Wednesday that suggest it could have much further to run. One high-profile announcement came from veteran cryptocurrency and forex trader Peter Brandt, who put a $400 price target on Litecoin. 

Given the fact that Litecoin currently trades at around $280 per token, that implies an upside of more than 40%. Even for cryptocurrency traders, that's a pretty decent return on investment.

Now what

One of the reasons Litecoin's popularity has risen is the rather wide range of companies that accept it. As the cryptocurrency world transforms itself as a true means of payment, the commercial utility provided by these blockchain protocols will come into focus more and more.

In this regard, Litecoin appears to be an intriguing option for investors. The token's price action in recent days signals a shift toward bullish momentum. Investors and traders will want to keep it on their radar.

Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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