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Bitcoin remains below its high at the start of the week, but out of nowhere Litecoin grew a further 13% today alone, closing a 33% green week for previously lagging altcoins.
But why is the altcoin on offer referred to as digital silver rising so wildly relative to the rest of the crypto space, including Bitcoin? Here are a dozen key factors behind Litecoin’s rally and why the end is nowhere in sight.
Litecoin soars 13% Intraday, is there a long-term altcoin recovery here?
Bitcoin has destroyed all expectations and destroyed any possibility of resistance with ease. In its wake, it also decimated most altcoins, dealing a devastating blow to alternative crypto tokens and pushing dominance to two-thirds of total market capitalization.
Altcoins are apparently in trouble, except for one light in all darkness: Litecoin. Even today Bitcoin has failed to revive its bullish momentum enough to establish a new peak. Yet Litecoin added 13% to its value today alone, bringing 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 last week alone, Litecoin has grown 33% and it could be just the beginning. The fact that the hard-capped altcoin built on the modified Bitcoin core code has spent so much time behind Ethereum, DeFi, Chainlink and the rest of the crypto space, it’s time for the coin to step out of the shadows and light up the gloomy altcoin market one more time. time.
But why, aside from the previous offset underperformance, the asset is so suddenly bullish.
The PayPal effect and Picture Perfect techniques suggest that LTC will overtake Bitcoin
The impact PayPal including Litecoin will have on LTC pricing cannot be overstated. Bitcoin is four times scarcer than Litecoin but is also 225 times more expensive per coin.
Institutions, companies, celebrities and the rich are buying Bitcoin, causing the rally that has taken place in recent months and throughout 2020.
But all the same reasons why BTC is a fintech force not to be underestimated are also present in Litecoin thanks to its birth from the Bitcoin Core code. Just 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 the technical data also supports the asset’s rally on both the USD and BTC pairs. Against the dollar, LTC is moving out of a long-term symmetrical triangle and reverse head and shoulders bottom pattern.
There is also a huge “Adam and Eve” bottom, consisting of a strong V-shaped rebound, followed by a more prolonged rounded structure.
In conjunction with the chart patterns, the indicators also point to a huge upside, with the first target being $ 150. The average directional index, used to measure the strength of the trend, shows that the bulls are in control by crossing the green DMI line. The ADX itself is climbing past the key reading of 20, which confirms that a new trend is brewing.
The Relative Strength Index is also moving up into bull market territory for the first since Litecoin’s halving in 2019. When the RSI on the weekly time frames reaches this level, another rally between 60% and 1300% followed.
Hidden bear div on RSI and wedge breakout, coinciding with TD 13 buy setup and more | Source: LTCBTC on TradingView.com
Bitcoin’s trading pair versus LTC is also equally bullish, while the rest of the altcoin market is in danger of extinction. LTC is breaking away from a huge descending wedge resulting from the 2019 peak.
The bearish resistance of the RSI has already been broken and a weekly close will confirm the move against BTC. The current weekly candle is above the midline of the Bollinger bands, suggesting at least a push towards the upper band if this Sunday night’s close is still above the midline.
There is also a massive hidden bullish divergence on the RSI just as it breaks to the top, and last week’s sweep of lows against BTC triggered a TD “13” sequential buy setup.
The last 13 bounced LTC towards its 2019 high against BTC, but a second 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
