Popular trader Nicholas Merten says Litecoin (LTC) is poised to significantly outperform Ethereum over the course of the next month.
In a new DataDash video, Merten states that LTC is apparently on the ground against Ethereum. The trader announces that he has invested a significant portion of his portfolio in the Bitcoin fork as he believes it could go up significantly in his ETH pair.
“In this area Litecoin has played 5 times against Ethereum in the past … That is huge. And these are the types of ratios to look for because that is how you are actually giving back multiples of multiples of what the market in general is getting.
This is the ultimate alpha here if that’s really how you want to put it. There aren’t much bigger options than finding these type of large-cap games that are already well established and that still have the chance to play insane multiples against another game like Ethereum that is already doing phenomenally well and that is leads most cryptocurrencies. “
Although the Merten does not provide a Litecoin price prediction, a chart of the Merten stock shows that Litecoin will rise towards $ 2,000 in the near future. According to CoinMarketCap, LTC is currently trading around $ 220.
However, the analyst notes that he is not keeping a close eye on Litecoin’s performance against the US dollar and suggests that traders look at the technical settings that are flashing on the LTC / ETH and LTC / BTC charts.
“I don’t really think the point is to watch the US dollar value graph. The biggest thing we want to see here is the proportions. The conditions are cheap now. I’m not saying they will go all the way here and do a 5x against Ethereum. I think Ethereum has a lot of momentum now with Decentralized Funding (DeFi) … but I’ll generally say if … it’s a 100% (2x), 200, 300, 400% return – whatever it is, this is one really cheap setup in my head for the technical …
This is not a basic argument. I’m not basically optimistic about Litecoin now compared to what I was basically optimistic about a year, two, four or five years ago. It’s about technical price patterns. Great cycles. Setting up patterns takes years. “
The DataDash founder notes that when traders start setting up their games, they should have solid exit strategies and prepare to secure profits early on.
“I would say… be a little less greedy than other participants. If you can secure those profits and then find other opportunities in the market that will position you much better … that’s the mindset that I’m thinking about. “
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