During the last cycle, Litecoin was as popular and exciting as the other top cryptocurrencies Bitcoin and Ethereum. But this time around, the so-called digital silver cryptocurrency is nowhere near performing as well as its digital gold counterpart or even other altcoins.
Whatever is causing it to lag behind the rest of the market, there are a few signs that the altcoin has bottomed out and is the next cryptocurrency to set its all-time high.
5 technical signs for Litecoin
This bull market is dominated primarily by Bitcoin, Ethereum, and innovative new blockchain-based technologies such as DeFi and NFTs.
During this cycle, Litecoin lags well behind the other top ten assets. Although Litecoin retains its position in the top ten, it is at risk of falling eventually and currently ranks ninth overall.
But before that happens, Litecoin could make a strong bounce according to several techniques.
First and foremost, in the rarely used six-week time frame on the LTCUSD pair, Litecoin has completed one of the technically cleanest Adam and Eve bottom formations in crypto.
The predicted target based on the precautionary rule could see Litecoin nearly double its previous all-time high in the weeks after things change.
Moving on to the LTCBTC trading pair, the quarterly timeframes are signaling that the relentless downtrend could be completely exhausted with a TD 13 and clearing of old lows.
A three-month candle has never traded below the current level and a reversal is more likely in this zone.
On monthly timeframes, the altcoin was trading in a falling wedge pattern against Bitcoin, and after a four-year bear market, it finally touched the RSI support.
At the same time, Litecoin continued to support support stretching back to the bottom of 2017 just before the altcoin began its four-year expansion against the top cryptocurrency.
Further closer to the weekly timeframes, the uptrend in the Relative Strength Index has been increasing since mid-2020.
If the bullish divergence fails, Litecoin will set new lows against Bitcoin.
The fact that Litecoin lagged far behind Bitcoin and Ethereum despite hitting an all-time high before the other two in the last cycle may indicate that the top of the crypto market is nowhere near.
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