Yerevan (CoinChapter.com) — Litecoin crossed $400 for the first time since its launch in 2011, confirming an actively rising euphoria in the cryptocurrency market as investors look for profitable ventures outside the traditional financial space.
The emerging digital assets market added up to $1.78 trillion to its capitalization in 2021 only. Every top-cap asset, including Bitcoin, Ethereum, XRP, Cardano, and others, performed better than expected. But the biggest takeaway was Dogecoin, whose gains surpassed 14,000 percent at one point in time last week, on repeated endorsements from billionaire entrepreneur Elon Musk.
Litecoin, which makes up around only 1 percent of the entire cryptocurrency market capitalization, waited for its turn before logging massive upside rallies. The silver crypto closed the first quarter of 2021 about 58 percent higher, logging a comparatively dwarfed upside performance compared to other top tokens. Nevertheless, rotational trading out of overvalued cryptocurrency helped park capital into the Litecoin markets.
Litecoin and Dogecoin prices showed signs of inverse correlation in the previous three sessions. Source: LTCUSD on TradingView.com
For instance, Dogecoin’s 33 percent crash from its record high of $0.816 coincided with the Litecoin price rally. The last 24 hours alone saw DOGE/USD crashing by 12 percent and LTC/USD rising by 18 percent.
Litecoin Overbought?
The LTC/USD exchange rate reached $413.91 on Tuesday, logging its record high. The pair’s massive upside move pushed its relative strength index (RSI), a price vs. momentum-gauging indicator, above 70, a threshold above which traders consider an asset as overbought.
It raises the possibility that Litecoin, like its overvalued peers, might face some degree of price correction in the sessions ahead. While that does not guarantee bullish exhaustion, it still poses a heavy amount of risks for traders planning to long LTC/USD at its current top levels.
Litecoin RSI hits historical resistance level after its price peaks. Source: LTCUSD on TradingView.com
From historical point of view, the Litecoin daily RSI now is at an inflection point.
The next bearish correction eyes $331.97 as intermediate downside target, for the level has served as support during the early May session. Meanwhile, an extended sell-off, prompted by profit-taking sentiment, could have the Litecoin price test its 20-day exponential moving average (green) as support.
If the cryptocurrency continues its move higher then analyst expects it to test $500 as its primary upside target.
Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including CoinChapter, NewsBTC, FxDailyReport, Bitcoinist, and CCN.
Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.
Cardano prices jumped more than 30% over the weekend. However, bears seemed to have moved in as ADA started...
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.