Crypto Analysis | What's Up With LTC?

Good day Hiveians!

Join me in analyzing the crypto markets!

 

It's been 2 years since my last look at LTC

Litecoin seems to be lately on the move as it has often outperformed other coins inclusing Bitcoin. I am not sure about why this is the case from a fundamental point of view (has there been an update, some new app etc.?). If you know, let me know!

But this is of course a TA post, so these developments are not in the focus of this discussion. First, how does LTC's chart look like over the last few years?

Since this is a log chart, the price movement may seem a bit lacking, but even in this time frame we can see that it moved from sub $1 to over $380... so not a bad price development! But paired against other coins this chart does indeed seem a bit flat. But we see more when we draw some basic trend lines.

This is a really interesting insight and offers an explanation for why LTC has been moving upwards recently. The resistance trend lines drawn here are all from the major bear markets. With the start of the new bull market price pierced through it and then continued to the top of the market. Interestingly, this recent breakout would then suggest that the bear market is basically over (at least for LTC). Another interesting point is that the high of 2021 is barely higher than for 2017. This is the reason why the chart seems flat: price essentially failed to make a significant higher high.

However, price also held at the important supporting trend line from 2015 which is something that most coins could not do in this bear market:

What is the potential outlook?

Since BTC is expected to max out in 2025 we can highlight this area in the chart:

Together with the trend lines this gives us a small range of around $240-$580. Not too ambitious! This would essentially suggest that LTC stays within this sideways movement for many years.

Of course anything can happen, and price would only need to increase by 400%-500% in order to reach the major resistance at the top. If it does before 2025, there is a big chance that price would break out of this channel and reach more significant higher highs. But my guess is that for 2023 at least, price will remain in this channel.

 

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As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!

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