Litecoin Rallies While Altcoins Flounder, Here What’s Behind The Show Of Strength
Bitcoin remains below its high set earlier in the week, but out of nowhere, Litecoin has surged an additional 13% today alone, capping off a 33% green week for the previously lagging altcoins.
But why is the altcoin offered referred to as digital silver soaring so wildly compared to the rest of the crypto space, Bitcoin including? Here are a dozen or so key factors behind the Litecoin rally and why an end is nowhere in sight.
Litecoin Soars 13% Intraday, Is A Long-Term Altcoin Recovery Here?
Bitcoin has been destroying all expectations and smashing through any slight chance of resistance with ease. In its wake, it has also decimated most altcoins, dealing a devastating blow to the alternative crypto tokens and causing dominance to rise to two-thirds of the total market cap.
Altcoins are seemingly in trouble, except for one light in all the darkness: Litecoin. Even Bitcoin today couldn’t revive its bullish momentum enough to set a new peak. Yet Litecoin has added 13% to its value today alone, taking the once lagging altcoin to $83.
Litecoin surges more than 13% in a single day while Bitcoin remains stable | Source: LTCUSD on TradingView.com
In the past week alone, Litecoin has risen 33%, and it could only be the start. The fact that the hard-capped altcoin built on modified Bitcoin core code has spent so long behind Ethereum, DeFi, Chainlink, and the rest of the crypto space, it is time for the coin to come out from the shadows and brighten up the somber altcoin market once again.
But why, aside from previous underperformance being made up for, is the asset so suddenly bullish.
The PayPal Effect And Picture Perfect Technicals Suggest LTC Will Outperform Bitcoin
The impact that PayPal including Litecoin will have on the price per LTC cannot be overstated. Bitcoin is four times as scarce as Litecoin but is also 225 times more expensive per coin.
Institutions, corporations, celebrities, and the wealthy are buying Bitcoin, causing the rally that’s taken place over the last few months and throughout 2020.
But all the same reasons that BTC is a fintech force to be reckoned with are also featured in Litecoin thanks to its birth by Bitcoin Core code. Only 84 million LTC spread across 346 reported PayPal users, leaves room for just 0.02 LTC per user.
And at a cost of just $80, compared to $18,000, $490, and $250 for the other coins listed, Litecoin is bound to shine.
Bullish Litecoin signals stack up against the dollar | Source: LTCUSD on TradingView.com
But technicals also back up the asset’s bullishness on both the USD and BTC pairs. Against the dollar, LTC is breaking up out of a long-term symmetrical triangle, and an inverse head and shoulders bottoming pattern.
There’s also an enormous “Adam and Eve” bottom, consisting of a sharp, V-shaped bounce, followed by a more prolonged, rounded structure.
Coinciding with the chart patterns, indicators also point to massive upside, with the first target being $150. The Average Directional Index, used to measure trend strength, shows that bulls are in control by crossover the green DMI line. The ADX itself is rising beyond the key reading of 20, which confirms a new trend is brewing.
The Relative Strength Index is also rising into bull market territory for the first since Litecoin’s halving in 2019. When the RSI on weekly timeframes reaches this level, another between 60% and 1300% rally has followed.
Hidden bear div on RSI and wedge breakout, coinciding with TD 13 buy setup and more | Source: LTCBTC on TradingView.com
The Bitcoin trading pair against LTC, also is equally as bullish, while the rest of the altcoin market faces extinction. LTC is breaking up out of a massive falling wedge stemming back to the 2019 peak.
RSI downtrend resistance is already broken, and a weekly close will confirm the move against BTC. The current weekly candle is above the middle line on the Bollinger Bands, which suggests at least a push to the upper band if this Sunday night’s close is still higher than the midline.
There’s also a massive hidden bullish divergence on the RSI, just as it breaks upward, and last week’s sweep of lows against BTC, triggered a TD Sequential “13” buy setup.
The last 13 caused LTC to bounce toward its 2019 highest against BTC, but a second one failed after the high was set. If the third time is the charm, Litecoin will outperform the rest of the market for quite some time, given how bullish it is against BTC, and how bearish the rest of the altcoin space is.
Featured image from Deposit Photos, Charts from TradingView.com
OhNoCrypto
via https://www.ohnocrypto.com
Tony Spilotro, @KhareemSudlow
