Litecoin over the last cycle was as standard and hyped as different high cryptocurrencies Bitcoin and Ethereum. This time round, nonetheless, the coin referred to as digital silver isn’t performing wherever 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 12 months’s high performers, nowhere to be discovered on that listing could be Litecoin – an altcoin that over the last bull market rose as furiously as Bitcoin, and peaked weeks forward of Ethereum.
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Throughout this cycle, Litecoin is lagging properly behind these different high ten property with severe longevity. Though Litecoin has maintained its place inside the high ten, it’s lastly vulnerable to falling out of it and is at the moment ranked in ninth place total.
However earlier than that would occur, the altcoin might lastly see a powerful bounce in line with a number of technicals.
A textbook instance of an Adam and Eve backside formation | Supply: LTCUSD on TradingView.com
At first, on the not often 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 may very well 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 stage, making a reversal at this zone all of the extra probably.
Do you know? RSI also can act as help and resistance for worth motion | Supply: LTCBTC on TradingView.com
On month-to-month timeframes, the altcoin has been buying and selling towards Bitcoin in a falling wedge sample, and after 4 years of a bear market, lastly touched down on RSI help.
On the similar time, Litecoin has fallen to help relationship again to the 2017 backside, simply earlier than the altcoin started its prolonged, four-year descent towards 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 towards Bitcoin. If confirmed, the reversal ought to start properly into 2021 earlier than the entire 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 to this point behind Bitcoin and Ethereum, regardless of reaching its all-time excessive earlier than the opposite two over the last cycle, might point out that the height of the crypto market is nowhere close to.
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When Litecoin does get away towards Bitcoin, it’s traditionally one of many largest and most worthwhile performs in crypto. However as worth motion has not too long ago proven, historical past doesn’t at all times repeat.
When will Litecoin lastly shine once more?
Featured picture from Deposit Pictures, Charts from TradingView.com