Could Litecoin Lead a Crypto Recovery
In this episode of NewsBTC’s brand new daily technical analysis videos, we look at the Litecoin, LTCBTC and LTCETH trading pairs and how the cryptocurrency could lead the crypto rally and outperform both Bitcoin and Ethereum.
Take a look at the video below.
VIDEO: Litecoin Price Analysis (LTCUSD): August 29, 2022
Litecoin went from an enthusiast favorite during the 2017 bull run to one of the most hated coins due to its lagging tendencies and limited design. Although the naysayers have a point, the cryptocurrency works a lot like Bitcoin, but faster. It also enjoys regulatory acceptance that allows it to be listed by major brands such as PayPal – where it is the cheapest coin on the list.
Litecoin Weekly can trigger RSI buy signal
Looking at the weekly relative strength index and LMACD, things look much healthier for Litecoin than other top cryptocurrencies. With a little pressure, Litecoin could set a higher high on the RSI. This is a buy signal according to the tool’s creator, J. Welles Wilder Jr., and previously started major bull runs in LTC, especially when combined with a breakout of the RSI downtrend resistance line.
Using time cycles, we can see that the RSI, LMACD and price are falling at similar points. Hurst cycle theory allows cycles to be up to 10% out of phase in either direction. The small deviation in the rhythm at our current bottom is completely within an acceptable range. Finally, LMACD has topped and bottomed on the same converging trend lines throughout the history of Litecoin price action. Litecoin has potentially found support on this trendline.
Has Litecoin found a bottom? | Source: BTCUSD on TradingView.com
LTCBTC: Momentum may be poised to change in a big way
Switching over to the LTCBTC trading pair, we can see that the monthly LMACD is turning green and the RSI has broken out of a downtrend resistance line. Similar to the USD pair, making a higher high can be a sign of a buy signal.
The previous cycle on the ratio followed a similar pattern. The first attempt at the breakout and bullish crossover fails, leading to several downsides. The second attempt was probably subject to similar sentiments as it is now. The previous failure combined with relative underperformance next to BTC caused Litecoin holders to capitulate just before the final turning point – a turning point that saw over 500% outperformance against Bitcoin.
A major momentum change could confirm | Source: LTCBTC on TradingView.com
LTCETH: Can The Dying Altcoin Defeat The Merge
Litecoin outperforming Ethereum is a tougher sell considering the upcoming merger. The merger will improve Ethereum tokenomics against price appreciation, making the cryptocurrency very attractive by comparison. However, even the LTCETH trading pair looks like the momentum is ready to reverse.
Can momentum turn even with the Merge on its way? | Source: LTCETH on TradingView.com
Coin Comparison: Bitcoin and Ethereum Long Term View
In our latest chart, we once again compare Litecoin to Bitcoin and Ethereum, but side by side we use USD pairs to demonstrate that Litecoin tends to outperform both assets towards the end of a crypto market cycle. Although Litecoin lags behind Bitcoin, clearly during the last cycle when momentum reversed, the move was massive. Litecoin rose from $4 to $400 per coin in just over two-thirds of the year.
Will Litecoin outperform again? | Source: BTCUSD on TradingView.com
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Featured image from iStockPhoto, Charts from TradingView.com
