Crypto News

Why This Major Crypto Could Soon Crater to Early-2017 Lows

Litecoin is one of many crypto tokens that has been struggling to garner any upwards momentum in recent times.

LTC has formed an incredibly close correlation to Bitcoin as of late, which has caused it to enter a long-held bout of sideways trading. Like BTC, it is currently trading at the lower boundary of this range and is beginning to flash some overt signs of weakness.

Analysts believe that its next big movement could prove to be dire for bulls, as it may plummet to levels not seen since early-2017.

There is one fractal pattern signaling that this next drop could be followed by a significant upside movement.

Its imminent decline, however, may be a symptom of the weakness that the cryptocurrency has seen relative to the rest of the markets in 2020. One trader is pointing out that it has been woefully underperforming many of its peers.

Litecoin Forms Close Correlation to Bitcoin But Severely Underperforms Crypto Market in 2020

At the time of writing, Litecoin is trading down just over 1% at its current price of $41. This is around the price level at which it has been hovering around for the past couple of days.

LTC’s over-month-long trading range has been established between $40 and $50, with the crypto only breaking above and below these boundaries on a few brief occasions.

This trading range has been formed in tandem with Bitcoin forming its range between $9,000 and $10,000.

Because Bitcoin and Litecoin have grown incredibly correlated as of late, it does appear that whether or not LTC breaks below $40 will depend on if the benchmark crypto is able to maintain above $9,000.

From a macro perspective, 2020 hasn’t been too great for Litecoin, as it is trading down nominally from where it started the year.

One analyst spoke about this in a recent tweet, explaining that LTC, Bitcoin Cash, and XRP have all been quite lethargic as of late, being unable to see “V-shaped” recoveries since the mid-March meltdown.

“Now if we look at the performance of the ‘Majors’ we’ve only really had ADA with a stronger return. Huge markup and the only one to have exceeded the Feb high. Weakness in recovery for BCH, LTC and XRP. Reduced % returns, rounding off and a huge distance from the Feb highs.”

Litecoin Crypto

Image Courtesy of Cold Blooded Shiller. Chart via TradingView.

LTC Likely to Decline to Early-2017 Lows Against Bitcoin

One analyst recently explained that he expects this underperformance to continue strong in the weeks ahead, potentially leading the crypto down to BTC price levels not seen since early-2017.

“LTCBTC: Can’t rule out another leg down. Would be a decent area to accumulate from,” he explained.

The same analyst also notes that this could form a similar fractal pattern to one seen a few years ago, signaling that this next decline could be just what is needed to kick off a parabolic uptrend.

Image Courtesy of TraderXO. Chart via TradingView.
Featured image from Shutterstock.
Charts from TradingView.

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

Write a Comment

Related Crypto News

The Three Most Controversial Bitcoin Price Models and What They Predict
Many are highly critical of the three highly popular models used widely by Bitcoin analysts — stock-to-flow, Hyperwaves, and...
Binance Donates $70k of PPE Equipment to Hospitals in the Philippines
Binance Charity (BC) has donated $70k worth of personal protective equipment (PPE) to eighteen hospitals and government institutions in...
Binance Donates $70k of PPE Equipment to Hospitals in the Philippines
Binance Charity (BC) has donated $70k worth of personal protective equipment (PPE) to eighteen hospitals and government institutions in...
Monaco Passes New Security Token Laws, but Acting on Them Is Not Easy
The government of Monaco has passed a new bill introducing the establishment of a security token framework. Monaco is...
Bitcoin SV is Up 21% This Week And Nobody Has a Clue Why
Bitcoin SV, the controversial blockchain token promoted by Craig Wright, has surged by 21 percent in just two days....
Bitcoin SV is Up 21% This Week And Nobody Has a Clue Why
Bitcoin SV, the controversial blockchain token promoted by Craig Wright, has surged by 21 percent in just two days....

Featured Crypto News

Bloomberg Analyst: Key Metrics Show Bitcoin Should Rocket Towards $12,000
It’s been a slow past few weeks for the Bitcoin market. The cryptocurrency has effectively been range-bound for two...
Report: $300B Worth of Food Will Be Traced Using Blockchain and IoT by 2027
A report claims that the global food industry could save over $100 billion annually by implementing blockchain and IoT...
BItcoin’s Sudden Drop to $9k Coincides With Fed’s Balance Sheet Contraction
Bitcoin plunged back towards $9,000 despite showing signs of upside correction in the early Friday session. The latest price...
Cardano (ADA) Is Forming the Signal That Preceded a 75% Crash: Analyst
Despite Bitcoin’s stagnation, Cardano (ADA) has performed extremely well over recent weeks. Data from crypto research firm Messari shows...
Three Important Reasons Why Ethereum Could Tumble Below $220
Ethereum failed to continue higher above $233 and declined sharply against the US Dollar. ETH is now trading below...
Bitcoin Dropping to $6K ‘Golden Pocket’ Isn’t Bearish, Says Trader
A classic Fibonacci retracement could land BTC/USD at $6,300 or lower and still not disturb the long-term trend. Bitcoin...