Litecoin is leading the most recent run and these altcoins may follow

• Litecoin’s breakout this week paints a bullish picture for larger altcoins like Ethereum and Chainlink.
• Ethereum is on the verge of completing the $ 520 leg, but the resistance at $ 495 needs to drop.
• Chainlink expects a breakout to $ 20 as long as buyers clear the obstacle on the parallel descending channel.

Litecoin stood out this week after surging more than 23% in 48 hours. In earlier stages, Litecoin tended to lead the altcoin breakout. Tokens such as Ethereum (ETH) and Chainlink (LINK) joined the rally, reaching higher levels.

Litecoin’s recent rally could signal a bullish trend in other altcoins

Litecoin appears to pave the way for major altcoins, and perhaps ETH and LINK will follow. A look back reveals that LTC is known for bullish runs for these tokens. For example, Litecoin rose more than 67% in April 2019, from $ 60 to $ 100. The impressive rally took place before the notable assisted recovery in the cryptocurrency market in May 2019.

LTC / USD daily chart

Ethereum began its bullish momentum in early May. The price action was majestic, so much so that Ether nearly doubled the value from $ 145 to $ 288, reached on May 30, 2019.

ETH / USD daily chart

Chainlink, like Ethereum, has followed in Litecoin’s footsteps. LINK was up 268% from $ 0.4 in late April to $ 1.5 in mid-May. With such a massive breakout, LINK and ETH could likely rebound to reach new annual highs before the end of the year.

LINK / USD daily chart

The Ethereum rally is in the early stages

At the time of writing, Ether is trading 32% higher than its November low. Similarly, the smart contract token reached new annual highs after breaking through the seller congestion zone of $ 490. A break above the $ 495 resistance could quickly push Ethereum to $ 520, as discussed earlier. of this week.

ETH / USD daily chart

As for Chainlink, there is a possibility of a $ 20 breakout if the resistance of the immediate ascending parallel channel is broken. On the downside, the Oracle token is trading above the 50-day simple moving average. Also, the channel’s middle limit is in line to prevent losses from resuming towards $ 10.

LINK / USD daily chart

On the other hand, history shows that when Litecoin is leading a bull run, it reverses before starting the fresh spike along with other altcoins. It also explains the ongoing withdrawal after the 23% rally. LTC has hit a wall at $ 77 and is currently trading at $ 73.

LTC / USD 4-hour chart

The Relative Strength Index strengthens the bearish outlook following a bearish divergence formed by a higher high in the overbought region followed by a higher low. If the support at $ 70 doesn’t hold, LTC could revisit the 50 SMA, slightly below $ 65. Other critical levels to keep in mind include the 100 SMA and 200 SMA.