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Bitcoin’s relentless ascent to new highs is causing the customary breakout from heritage altcoins such as LTC, BCH, and XLM.
Bitcoin (BTC) has been the undisputed cryptocurrency market leader since its creator introduced the digital asset in 2009, and it remains the dominant force in the industry to this day.
This truth was highlighted on September 6 when the price of Bitcoin reached $52,000, sparking a market-wide rally that boosted the prices of small- and large-cap altcoins.
When Bitcoin rallies, most of the legacy coins like Litecoin, Bitcoin Cash, XRP and Stellar tend to move in tandem. Now that BTC looks ready to test new highs, let’s take a look at how the so-called ‘dinosaur tokens’ are doing.
Litecoin (LTC) has often been touted as the silver to Bitcoin’s gold because its faster protocol was partially modeled after the top crypto, but modified to increase the token supply and block time.
One notable modification to the blockchain over the past few years was the addition of Mimblewimble technology to help increase user privacy and network scalability.
Data from TradingView shows that since hitting a low near $165 on Aug. 31, the price of LTC increased 41% to a daily high of $233 on Sep. 6 as the market-wide momentum from Bitcoin’s recovery to $52,000 brought life to the market.
It now remains to be seen if Litecoin can capitalize on this spike in momentum and continue to climb higher on its own merits or if the price will have to wait for further upside from BTC.
Bitcoin Cash (BCH) is probably the most successful hard fork of the Bitcoin protocol that emerged out of the 2017 to 2018 bull cycle and some would say it maintains a decent following to this day.
Data from TradingView shows that Bitcoin Cash’s response to the BTC recovery was muted in comparison to Litecoin, but its price still managed to increase from a low of $617 on Aug. 31 to a daily high at $806 on Sep. 6, an increase of 30%.
BCH’s recent price action resulted in the construction of a bullish cup and handle pattern, as seen in a tweet from Twitter analyst Alex Clay, and Monday’s price movement suggests that the price could break out from current levels and trend higher.
$BCH produced a cup & handle pattern👀
Bull if flips above s/r horizontal (also neckline of the pattern.)📈 pic.twitter.com/KeBh8V5Jtb
— Alex Clay (@cryptclay) September 3, 2021
Stellar (XLM) is a 2017 project that arose after Ripple co-founder Jed McCaleb departed the firm in 2013 due to differences over the company’s future direction. When it was first introduced, Stellar had a similar concept and circulating supply as the Ripple project, but it has subsequently moved to its own route of development.
The network has now emerged as one of the top options for businesses and governments considering implementing protocols on its low-cost and scalable platform. Because of these characteristics, it is a viable choice for hosting stablecoins and central bank digital currencies.
Data from TradingView shows that since hitting a low of $0.324 on Aug. 31, the price of XLM increased 29% to a daily high of $0.42 on Sep. 6.