Litecoin Approaches Record High On Altcoin Season Hopes; What’s Next?

Litecoin Approaches Record High On Altcoin Season Hopes; What’s Next?
Image by Free-Photos from Pixabay

Yerevan (CoinChapter.com) – Litecoin (LTC) blasted higher this week, refreshing its upside target to a new all-time high. Its gains followed similar bullish performances in rival altcoin markets, led by the second-largest cryptocurrency Ethereum, and a slowdown in Bitcoin’s prevailing uptrend.

New Altcoin Season?

All major altcoins in the top 5 cryptocurrencies by market cap are currently bullish, while Bitcoin (BTC) price is still stabilizing. Ethereum (ETH), Binance coin (BNB), Dogecoin (DOGE), XRP, and Litecoin have posted significant gains throughout the past week, which possibly indicates a new “altcoin season” is looming.

Traders tend to turn their attention to altcoins as Bitcoin consolidates. They redirect a part of their portfolio to the tokens with maximum potential to secure short-term profits. In turn, it spikes their value against the US dollar and Bitcoin itself.

Read more: Litecoin Price Approaches Record High After CoinShares’ ETP Launch

However, experts believe traders should be cautious when gauging upside trends in the crypto market, especially when their risk profiles focus on altcoins due to their higher-than-bitcoin volatility.

“Never invest anything you aren’t willing to lose,” advised Ben Weiss, the co-founder and CEO of CoinFlip, one of the largest bitcoin ATM companies in the U.S. He noted that while many people experience crypto FOMO, they should trade carefully and allocate only a small portion of their portfolio into altcoins.

Read more: Litecoin Expects to Hit Record amid Institutional Boom; Here’s How

That said, altcoins like LTC are on the rise, promising a short-term profit, according to technical indicators.

LTC riding the bull. Technical Indicators

The cryptocurrency named “silver to Bitcoin’s gold” has been forming an Ascending Channel since Jan 2021. The channel consists of two parallel ascending lines with the same slope. The upper resistance line stops the token’s attempts for a breakout. The lower trendline prevents a breakdown and provides support, serving as an indicator for traders to buy the token and keep the price from dropping.

Litecoin in an Ascending Channel with aim for new record-high. Source: LTCUSD on TradingView.com
Litecoin in an Ascending Channel with aim for new record-high. Source: LTCUSD on TradingView.com

Three horizontal support lines on the chart provide additional support targets for traders to consider. Considering the bullish sentiment of the channel, the support targets will prevent the price from dropping and provide a cue for traders to pick up the pace.

According to the Ascending Channel formation, LTC will possibly hit the $400 price benchmark before the end of the week. The token is trading at $329 in the Berlin session Tuesday. It is aiming to beat the previous record-high of $366 on 18 Dec 2017.

The 20-day Exponential Moving Average (EMA-20, blue line on the chart), is in a pronounced upward trend. It indicates the continuation of the bullish pattern. The prolonged bullish trend means a high probability of Litecoin hitting a new record in the upcoming sessions.

Read more: Grayscale Adds More LTC To Its Holdings As Litecoin Price Targets $400

While altcoins are considered a risky investment, the upcoming altcoin season possibly promises gains for traders, at least in the short term. If Litecoin manages to stay in the ascending channel pattern, it will likely approach the $400 margin. In that case, Litecoin will lock a new all-time high value.

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