Litecoin Rallies While Altcoins Flounder, Here What’s Behind The Show Of Strength

Tony "The Bull" Severino

4 years ago

4 mins read

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Bitcoin remains below its high set earlier in the week, but out of nowhere, Litecoin has surged an additional 13% today alone, capping off a 33% green week for the previously lagging altcoins.

But why is the altcoin offered referred to as digital silver soaring so wildly compared to the rest of the crypto space, Bitcoin including? Here are a dozen or so key factors behind the Litecoin rally and why an end is nowhere in sight.

Litecoin Soars 13% Intraday, Is A Long-Term Altcoin Recovery Here?

Bitcoin has been destroying all expectations and smashing through any slight chance of resistance with ease. In its wake, it has also decimated most altcoins, dealing a devastating blow to the alternative crypto tokens and causing dominance to rise to two-thirds of the total market cap.

Altcoins are seemingly in trouble, except for one light in all the darkness: Litecoin. Even Bitcoin today couldn’t revive its bullish momentum enough to set a new peak. Yet Litecoin has added 13% to its value today alone, taking the once lagging altcoin to $83.

Litecoin surges more than 13% in a single day while Bitcoin remains stable | Source: LTCUSD on TradingView.com

In the past week alone, Litecoin has risen 33%, and it could only be the start. The fact that the hard-capped altcoin built on modified Bitcoin core code has spent so long behind Ethereum, DeFi, Chainlink, and the rest of the crypto space, it is time for the coin to come out from the shadows and brighten up the somber altcoin market once again.

But why, aside from previous underperformance being made up for, is the asset so suddenly bullish.

The PayPal Effect And Picture Perfect Technicals Suggest LTC Will Outperform Bitcoin

The impact that PayPal including Litecoin will have on the price per LTC cannot be overstated. Bitcoin is four times as scarce as Litecoin but is also 225 times more expensive per coin.

Institutions, corporations, celebrities, and the wealthy are buying Bitcoin, causing the rally that’s taken place over the last few months and throughout 2020.

But all the same reasons that BTC is a fintech force to be reckoned with are also featured in Litecoin thanks to its birth by Bitcoin Core code. Only 84 million LTC spread across 346 reported PayPal users, leaves room for just 0.02 LTC per user.

And at a cost of just $80, compared to $18,000, $490, and $250 for the other coins listed, Litecoin is bound to shine.

Bullish Litecoin signals stack up against the dollar | Source: LTCUSD on TradingView.com

But technicals also back up the asset’s bullishness on both the USD and BTC pairs. Against the dollar, LTC is breaking up out of a long-term symmetrical triangle, and an inverse head and shoulders bottoming pattern.

There’s also an enormous “Adam and Eve” bottom, consisting of a sharp, V-shaped bounce, followed by a more prolonged, rounded structure.

Coinciding with the chart patterns, indicators also point to massive upside, with the first target being $150. The Average Directional Index, used to measure trend strength, shows that bulls are in control by crossover the green DMI line. The ADX itself is rising beyond the key reading of 20, which confirms a new trend is brewing.

The Relative Strength Index is also rising into bull market territory for the first since Litecoin’s halving in 2019. When the RSI on weekly timeframes reaches this level, another between 60% and 1300% rally has followed.

Hidden bear div on RSI and wedge breakout, coinciding with TD 13 buy setup and more | Source: LTCBTC on TradingView.com

The Bitcoin trading pair against LTC, also is equally as bullish, while the rest of the altcoin market faces extinction. LTC is breaking up out of a massive falling wedge stemming back to the 2019 peak.

RSI downtrend resistance is already broken, and a weekly close will confirm the move against BTC. The current weekly candle is above the middle line on the Bollinger Bands, which suggests at least a push to the upper band if this Sunday night’s close is still higher than the midline.

There’s also a massive hidden bullish divergence on the RSI, just as it breaks upward, and last week’s sweep of lows against BTC, triggered a TD Sequential “13” buy setup.

The last 13 caused LTC to bounce toward its 2019 highest against BTC, but a second one failed after the high was set. If the third time is the charm, Litecoin will outperform the rest of the market for quite some time, given how bullish it is against BTC, and how bearish the rest of the altcoin space is.

Featured image from Deposit Photos, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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