So far, Litecoin has been among the worst performers in the top ten cryptocurrency by market cap in the last altcoin season, but that is about to change.
Therefore, Litecoin is ready to shine again and could soon become the standout industry leader.
Why did Litecoin lag behind the rest of the altcoin market?
Markets are cyclical and the flow of capital from and to one asset to another. During the crypto bear markets, money tends towards the dollar and away from risk.
Altcoins are particularly bearing the brunt of the beating, and Bitcoin is holding onto more appreciation than others. However, when the sentiment is positive, altcoins typically outperform Bitcoin significantly during periods known as alt-seasons.
Related reading | Here is the line that separates bitcoin dominance from altcoin season
Another Alt-Season is around the corner, and even meme-based assets like Dogecoin are soaring 800% in a single day. Ethereum has hit a new all-time high, and most other top ten cryptocurrencies by market capitalization are rising. Even XRP, a coin now classified as an unregistered security by the SEC, saw a surge.
Meanwhile, one of the oldest coins on the market and one that has stuck to the top ten assets by market cap for much of its existence continues to lag the market. But Litecoin could be poised for something big.
Litecoin has an extremely negative reputation in the crypto market, both for its recent failure to generate returns for investors, and for the dumping inventory of coin founders at the height of the recent bull market.
It left a sour taste and tarnished the reputation of digital silver. But technically and fundamentally, Litecoin is ready to rip.
Technical and basic factors for FOMO for digital silver
According to data from Grayscale Investments, BTC stocks have increased by more than 40,000 BTC in the past 30 days. The ETH holdings fell by 6,000. However, grayscale added 150,000 LTC for bullish number one signal over the same period.
The asset’s supply isn’t quite as scarce as Bitcoin, but at 84 million LTC, it’s still a narrow choice for institutions.
In terms of bullish technicals, Litecoin has broken out of a massive, multi-year symmetrical triangle that has a target of nearly $ 700 per LTC.
Litecoin ready to withdraw against the dollar Source: LTCUSD on TradingView.com
Exceeding the current resistance level (red) of the USD pair would also trigger the confirmation of a basic pattern from Adam and Eve (blue).
Related reading | The altcoin season is here: “Buy Crypto” outperforms Bitcoin searches on Google
A similar pattern could also form in the LTCBTC trading pair, which coincides with a falling wedge with a high time frame. The technical indicators are bullish too, with the Relative Strength Index possibly showing a hidden divergence and the monthly MACD trending almost up.
An upward trend against Bitcoin is also for Litecoin | likely source: LTCBTC on TradingView.com
The crossover of the MACD would indicate that momentum has shifted and the buy could gain momentum. Similar to Bitcoin and Ethereum, FOMO kicked in when assets rebounded and the rest is history.
Previous all-time highs have been shattered and each coin has been put into pricing mode. Litecoin coming next?
Featured image from deposit photos, charts from TradingView.com
