So far, Litecoin has been one of the weakest performers in the top 10 by market cap during the recent altcoin season, but this seems to be about to change.
This is why Litecoin is ready to shine once again and could soon become the most prominent coin in the industry.
Why is Litecoin lagging behind the rest of the market?
Markets are cyclical, and capital flows will flow from one asset to another. In a crypto bear market, cash flows often tend to move back to the dollar in order to avoid risk.
Altcoins will suffer strong selling pressure from the bears and Bitcoin will retain more value than other coins. But when sentiment is positive, altcoins often outperform Bitcoin by a sizable margin, over so-called altcoin seasons.
Another altcoin season is upon us, and even meme-based assets like Dogecoin are up 800% in just one day. Ethereum has set new all-time highs and most of the other top ten cryptocurrencies by market cap have soared. Even XRP, a coin currently reeling from being treated by the SEC as an unregistered security, saw a rise.
Meanwhile, one of the oldest coins on the market and one of the top ten assets by market cap for most of its lifetime, continues to lag behind the market. But Litecoin could be preparing for something bigger.
Litecoin has a bad reputation in the crypto market, both in terms of being unprofitable to investors recently and due to the coin’s founder dumping his hold at the top of the market. last price.
It leaves a tart taste and tarnishes the digital silver’s reputation. But technically and fundamentally, Litecoin is ready to split.
Basic and technical elements for FOMO fuel for digital silver
According to data from Grayscale Investments, the amount of BTC held over the past 30 days has increased by more than 40,000 BTC. ETH holdings decreased by 6,000. However, Grayscale added 150,000 LTC around this same time period, a good boon for the price.
The asset supply is not as scarce as Bitcoin, but at only 84 million LTC, it is still a small amount for the demand from institutions.
Technically, Litecoin has broken above a large symmetrical triangle spanning many years, and is expecting a target of close to $ 700 per LTC.
A breakout of current resistance levels (in red) on the USD pair, will also trigger the confirmation of an Adam and Eve bottom formation (blue) pattern.
A similar pattern can form on the LTC / BTC trading pair, along with the formation of a descending wedge pattern. Technical indicators are also bullish, with the RSI likely to create a hidden bullish divergence and the monthly MACD histogram almost cutting up the positive territory.
The MACD crosses up indicating that momentum has changed and buying is likely to increase. As is the case with Bitcoin and Ethereum, once an asset starts to increase, the FOMO is triggered with historical comparisons.
Previous all-time highs have been conquered, and many coins including Bitcoin and Ethereum have entered price discovery mode. Is that the next thing about Litecoin?