Bitcoin remains below its high at the start of the week, but out of nowhere, Litecoin is up another 13% today alone, completing a 33% green week for the previously lagging altcoins.
But why is the altcoin on offer, known as digital silver, soaring compared to the rest of the crypto space, including bitcoin? Here are roughly a dozen key factors behind the Litecoin rally and why there is no end in sight.
Litecoin is up 13% over the course of the day. Is long-term altcoin recovery possible here?
Bitcoin has destroyed all expectations and overcame any slight chance of resistance with ease. As a result, it has also decimated most of the altcoins, dealing a devastating blow to alternative crypto tokens and increasing dominance to two-thirds of the total market capitalization.
Altcoins seem to be in trouble, except for one light in the dark: Litecoin. Even Bitcoin couldn’t revive its uptrend enough today to hit a new high. Still, Litecoin has increased its value by 13% today alone, increasing the once lagging altcoin to $ 83.
Litecoin is up more than 13% in a single day while Bitcoin remains stable Source: LTCUSD on TradingView.com
In the past week alone, Litecoin is up 33%, and it could only be the beginning. The fact that the hard-capped altcoin, based on modified bitcoin core code, has lingered behind Ethereum, DeFi, Chainlink and the rest of the crypto space for so long, it’s time the coin came out of the shadows and lighted up the gloomy altcoin market once again.
But why is the asset bullish all of a sudden, aside from making up for the previous underperformance?
The PayPal effect and beautiful techniques suggest that LTC will outperform Bitcoin
The impact of PayPal including Litecoin on the price per LTC cannot be overstated. Bitcoin is four times as rare as Litecoin, but also 225 times more expensive per coin.
Institutions, corporations, celebrities and the wealthy are buying Bitcoin and causing the rally that has taken place in recent months and throughout 2020.
The same reasons that BTC is a fintech force to be reckoned with are also included in Litecoin thanks to the birth of the Bitcoin core code. Just 84 million LTC out of 346 reported PayPal users, distributing just 0.02 LTC per user.
And at a price point of just $ 80 compared to $ 18,000, $ 490, and $ 250 for the other coins listed, Litecoin is sure to shine.
Bullish Litecoin signals stack against the dollar Source: LTCUSD on TradingView.com
However, the technical data also supports the upward movement of the asset in both the USD and BTC pairs. Against the dollar, LTC breaks out of a long-term symmetrical triangle and an inverted basic pattern for the head and shoulders.
There is also a huge Adam and Eve floor that consists of a sharp, V-shaped crack followed by a longer, rounded structure.
Simultaneously with the chart patterns, the indicators are also pointing to a massive uptrend with the first target being $ 150. The Average Directional Index, used to measure trend strength, shows that bulls are in control by crossing the green DMI line. The ADX itself rises above the key value of 20, confirming that a new trend is brewing.
The Relative Strength Index also climbs into bull market territory for the first time since Litecoin halved in 2019. When the RSI hits this level in weekly periods, another rally between 60% and 1300% ensued.
Hidden bear divide on RSI and wedge breakout, at the same time as TD 13 Buy Setup and more | Source: LTCBTC on TradingView.com
The bitcoin trading pair against LTC is equally bullish while the rest of the altcoin market is critically endangered. LTC is erupting from a massive falling wedge that dates back to its 2019 peak.
The RSI downtrend resistance has already broken and a weekly close will confirm the move against BTC. The current weekly candle is above the center line of the Bollinger Bands, which suggests at least some pressure on the upper band if the closing price is still higher than the center line on Sunday evening.
There’s also a massive hidden bullish divergence in the RSI just as it breaks up, and last week’s low against BTC triggered a TD Sequential “13” buy setup.
The last 13 caused LTC to rebound against BTC to its 2019 high, but a second failed after the high was set. When the third time is the stimulus, Litecoin will outperform the rest of the market for some time, considering how bullish it is about BTC and how bearish the rest of the altcoin space is.
Featured image from deposit photos, charts from TradingView.com