Litecoin over the past cycle was as widespread and hyped as different high cryptocurrencies Bitcoin and Ethereum. This time round, nonetheless, the coin known as digital silver isn’t performing anyplace almost in addition to its digital gold counterpart and even different altcoins.
No matter has been inflicting the lag behind the remainder of the market, there are a number of indicators that the altcoin has bottomed and is the subsequent cryptocurrency in line to set a brand new all-time excessive.
5 Technical Indicators That Level To A Bullish Litecoin Revival
This bull market has been dominated primarily by Bitcoin, Ethereum, and revolutionary new blockchain-based applied sciences like DeFi and NFTs.
Among the many yr’s high performers, nowhere to be discovered on that checklist could be Litecoin – an altcoin that over the past bull market rose as furiously as Bitcoin, and peaked weeks forward of Ethereum.
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Throughout this cycle, Litecoin is lagging nicely behind these different high ten property with critical longevity. Though Litecoin has maintained its place throughout the high ten, it’s lastly susceptible to falling out of it and is at the moment ranked in ninth place total.
However earlier than that would occur, the altcoin may lastly see a powerful bounce in response to a number of technicals.
A textbook instance of an Adam and Eve backside formation | Supply: LTCUSD on TradingView.com
Firstly, on the hardly ever used six-week timeframe on LTCUSD the buying and selling pair, Litecoin has accomplished one of many technically cleanest Adam and Eve backside formations in crypto.
The projected goal based mostly on the measure rule ought to ship Litecoin to just about double its earlier all-time excessive inside weeks as soon as issues do flip round.
A TD 13 sometimes suggests a pattern is reaching the utmost level of exhaustion | Supply: LTCBTC on TradingView.com
Switching to the LTCBTC buying and selling pair, quarterly timeframes are signaling that the brutal downtrend could possibly be utterly exhausted with a TD 13 and a sweep of former lows.
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A quarterly candle has by no means traded under the present degree, making a reversal at this zone all of the extra possible.
Do you know? RSI may act as help and resistance for value motion | Supply: LTCBTC on TradingView.com
On month-to-month timeframes, the altcoin has been buying and selling in opposition to Bitcoin in a falling wedge sample, and after 4 years of a bear market, lastly touched down on RSI help.
On the identical time, Litecoin has fallen to help courting again to the 2017 backside, simply earlier than the altcoin started its prolonged, four-year descent in opposition to the highest cryptocurrency.
Is that this the bullish sign Litecoin bag holders have been ready for? | Supply: LTCBTC on TradingView.com
Zoomed in additional to weekly timeframes, a bullish divergence on the Relative Power Index has been constructing since round mid-2020.
If the bullish divergence fails, Litecoin will set new lows in opposition to Bitcoin. If confirmed, the reversal ought to start nicely into 2021 earlier than the overall cryptocurrency market tops out as soon as once more.
Litecoin is severely lagging behind Ethereum and Bitcoin | Supply: LTCUSD on TradingView.com
The truth that Litecoin stays thus far behind Bitcoin and Ethereum, regardless of reaching its all-time excessive earlier than the opposite two over the past cycle, may point out that the height of the crypto market is nowhere close to.
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When Litecoin does escape in opposition to Bitcoin, it’s traditionally one of many largest and most worthwhile performs in crypto. However as value motion has not too long ago proven, historical past doesn’t all the time repeat.
When will Litecoin lastly shine once more?
Featured picture from Deposit Photographs, Charts from TradingView.com