Litecoin (LTC) seems to have started a new trend against Bitcoin (BTC) since it broke an important fall wedge against Bitcoin (BTC) on the LTC / BTC daily table above reported. This wedge that falls extends until January of this year, when the correction began. Normally, this would be considered a big victory for Litecoin (LTC) as the price is about to start a new trend that after an extended correction should be a bullish trend. However, the RSI analysis for Litecoin (LTC) presents a completely different image that brings us closer to reality and shows that it will not be easy.
RSI for LTC / BTC was also exchanged in a wedge but it is a wedge growing with respect to the fall wedge for LTC / BTC. This means that it is expected that RSI will fall below its growing wedge in the near future, a bearish development that would lead to a decline in the LTC / BTC. At this point, LTC / BTC exchanges along the trend line a break below which could be a very bearish sign for Litecoin (LTC) as it could trigger a massive panic sale. There is no support at this point except for the trend line. If the price falls below it, it will be in a complete free fall and it will be up to investors to withdraw it from there. The VIX profile on the daily chart for LTC / BTC shows that the price has found short-term support around existing levels and that it will be difficult to push the lowest price from these levels. However, if the bears manage to do so, they could push Litecoin (LTC) into a long-term bear trend.
Litecoin (LTC) appears to be even weaker against the US dollar (USD). The daily chart above for LTC / USD shows that Litecoin (LTC) can still touch the lower limit of the falling wedge. However, if it does, it would mean breaking up under the psychological support of $ 50. If that happens, it will probably be followed by a massive panic sale. The volume is already low and most of the investors who cling to the cryptocurrencies at this stage are those with strong hands. They are not likely to fold before whale manipulation tactics under normal conditions. However, if the market breaks the structure and signs of a long-term bear trend begin to emerge, then a large number of current investors would be ready to jump ship, which would make it even easier for bears to lower the price.
What makes things so complicated for coins like Litecoin (LTC) is that they do not actually have specific use cases. Most of them are spin-off coins that claim to do what Bitcoin (BTC) has failed to do so far. However, none of these spinoff coins has any idea what their place will be in the market once Bitcoin (BTC) will solve these problems. The people in the market at this stage are mostly professionals and smart people. They realize that the lack of distinct use cases for most coins like Litecoin (LTC) makes them risky long-term investments. This is the reason why during yesterday's correction; we have seen coins like Lisk (LSK) and Golem (GNT) stand up against coins without use cases, although both are normally considered volatile swings with deep losses during a correction. As the market matures, some coins will lose their place because they will not be able to catch up due to real cases or applications. It is true that this is a fairly large space where many projects can coexist, but not spinoff projects. They can exist but not as they do today.