LTC/USD pair trading in bullish wedge formation since May 19 crash
Litecoin could break out of the pattern and tap $145 in the near term
JAIPUR (Coinchapter.com) — Litecoin jumped 11% in the wake of a market-wide recovery on July 21. In the last correction that started July 12, the spot LTC/USD pair was down near $100.
Bulls took charge in the London trading session last noon and catapulted Bitcoin’s light counterpart to $117. However, the party seems to have just begun as LTC/USD is looking to chart a higher course up north.
Litecoin has been trading within a bullish wedge pattern since tumbling down from its all-time high of $413 in May. The LTC/USD pair tested the upper bounds of the wedge quite a few times during the downtrend.
The latest 11% jump hints at another restest of the wedge’s upper bound. And not just the upper bound of the bullish wedge but the extrapolated descending channel as well.
The point where the 50-day moving average (MA) wave and the upper bound of the extrapolated descending channel intersect lies at $145, a nearly 20% upside from current prices.
LTC/USD spot buyers would need to reclaim $125 and then keep the pressure on until a successful close above $145 is achieved. The MACD indicator just flipped green, hinting at the beginning of a new bullish cycle. RSI, too logged an uptick and is headed towards 44.05.
— Michaël van de Poppe (@CryptoMichNL) July 21, 2021
Another analyst who goes by the Twitter handle “@misconfig_exe” also presented a few technical arguments in the latest Tweet thread, which support a possible Litecoin’s bullish breakout scenario. For example, considering the Litecoin/Bitcoin ratio, the chartist said:
The LTC/BTC pair is a ratio of the value of LTC in terms of BTC value. Litecoin’s price has a demonstrated cycle range to Bitcoin price since 2011 – LTC acts as an oscillator on the LTC/BTC chart. Its descending trend is close to a breakout (more ltr)
He also supplied the below chart to support his analysis.
LTC/BTC ratio points at breakout. Source: Twitter – @misconfig_exe
The analyst in the following argument pointed out how Litecoin is undervalued as compared to Bitcoin.
Litecoin has oscillated around 1.2% of bitcoin price, with cycle highs of 2.5% and cycle lows of .0042%. This ratio is expressed in $LTCBTC pair. The pair cycles from 0.025 LTC/BTC to 0.004 LTC/BTC. Current value is 0.00366 LTC/BTC, significantly undervalued compared to BTC.
Litecoin is significantly undervalued compared to Bitcoin, Source: Twitter – @misconfig_exe
Discussing the all-time lows at which the LTC/BTC pair is trending, misconfig_exe forecasted that a significant upward correction awaits Bitcoin’s silver.
Litecoin historically has grown 4x-6x more than Bitcoin from cycle lows. I speculate that Litecoin will grow 4-5x more than Bitcoin (short-term) when it pumps, as it is currently reaching all-time lows on the LTC/BTC chart.
LTC has quite a lot from growing against BTC. Source: Twitter – @misconfig_exe
But first, Litecoin bulls need to make the push to $145 before any other attempt at an upside. How soon will the said technical scenario play out? That remains to be seen.
Himadri is an active investor in cryptocurrencies and upcoming blockchain technology projects. He has been a part of the digital asset space since 2017 and has held multiple positions as Social Media Manager, Assistant Editor, Sponsored Content Manager, Cryptocurrency Journalist roles in reputed news outlets like NewsBTC, Bitcoinist and CryptoPotato. He has also helped numerous blockchain projects gain prominence through terse and succinct marketing/technical content. Himadri comes with a marketing and engineering background, and has worked with reputed names such as GE Healthcare, Volvo Trucks and Polycom before moving into crypto.
YEREVAN (CoinChapter.com) – Stablecoin issuance protocol Terra made headlines in the previous days after its governance token LUNA crashed...
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.