Thus far, Litecoin has been among the weakest performers in the cryptocurrency top ten by market cap during this recent altcoin season, but that is all about to change.
Here’s why Litecoin is ready to shine once again and could soon become the stand-out industry leader.
Why Has Litecoin Lagged Behind The Rest Of The Altcoin Market?
Altcoins especially take the brunt of the beating, and Bitcoin holds onto more value gained than others. But when sentiment is positive, altcoins typically outperform Bitcoin by a sizable margin, during phases called alt seasons.
Related Reading | Here’s The Line Separating Bitcoin Dominance From Altcoin Season
Another alt season is upon us, and even meme-based assets like Dogecoin are rallying 800% in a single day. Ethereum has set a new all-time high and most other top ten cryptocurrencies by market cap are soaring. Even XRP, a coin now reeling due to being deemed an unregistered security by the SEC, saw a surge.
Meanwhile, one of the oldest coins out there and one that has hung onto the top ten assets by market cap for much of its existence, continues to lag behind the market. But Litecoin could be gearing up for something huge.
Litecoin has an extremely negative reputation in the crypto market, both for its recent failure to produce returns for investors, and due to the coin’s founder dumping holdings at the peak of the last bull market.
It left a sour taste behind and tarnished the digital silver’s reputation. But technically, and fundamentally, Litecoin is ready to rip.
Technical And Fundamental Factors To Fuel FOMO For Digital Silver
According to data from Grayscale Investments, BTC holdings over the last 30 days have increased by more than 40,000 BTC. ETH holdings dropped by 6,000. Grayscale, however, added 150,000 LTC during the same timeframe for bullish signal number one.
The asset’s supply isn’t quite as scarce as Bitcoin, but at 84 million LTC it is still slim picking for institutions.
In terms of bullish technicals, Litecoin has broke upward out of a massive, multi-year symmetrical triangle, which projects a target of nearly $700 per LTC.
Litecoin is ready to take off against the dollar | Source: LTCUSD on TradingView.com
Pushing beyond the current resistance level (red) on the USD pair, would also trigger the confirmation of an Adam and Eve bottoming pattern (blue).
Related Reading | Altcoin Season Is Here: “Buy Crypto” Surpases Bitcoin Searches On Google
A similar pattern might also be forming on the LTCBTC trading pair, coinciding with a high timeframe falling wedge. Technical indicators are also bullish, with the Relative Strength Index potentially exhibiting a hidden divergence, and the monthly MACD nearly crossing upward.
Upside against Bitcoin is also likely for Litecoin | Source: LTCBTC on TradingView.com
The MACD crossing up would indicate that momentum has shifted, and buying could pick up steam. Much like what was the case with Bitcoin and Ethereum, once the assets began to rally, FOMO kicked in and the rest is history.
Former all-time highs were smashed and each coin has entered price discovery mode. Is that’s what is next for Litecoin?
Featured image from Deposit Photos, Charts from TradingView.com