Because of this, LTC is up nearly 20% to a 6 month high
On the daily chart, LTC gained nearly 20% on September 11th, hitting its highest level since May 2021 amid a strong bull market that analysts attribute to inflation concerns.
The 14th largest digital asset rebounded more than 25% in 3 days, propelling the price to nearly $ 252. Meanwhile, the total crypto market cap topped $ 3 trillion, an all-time high.
The data shows that LTC’s ongoing price rally has inspired similar upward moves in leading digital assets.
Bitcoin, for example, set a new record high on Tuesday at $ 68,641. ETH also hit an all-time high of over $ 4,840.
performance of NS Top cryptocurrencies in the past 24 hours | The source: OLDoingecko
However, few of the top altcoins outperformed Bitcoin in 24 hours, including LTC. The data provided by Messari shows that LTC / BTC is trading heavily and is up almost 14%, showing the movement of capital from Bitcoin into the LTC market.
The technical outlook for the pair will remain positive in the short term based on a classic bullish reversal pattern known as the falling wedge.
The falling wedge is wide at the top but narrows as the price moves down. Bullish confirmation occurs when price breaks above the wedge’s higher trendline. Analysts often interpret a breakout as a signal for a rally towards a profit target as long as the maximum height of the wedge.
Weekly LTC / BTC price chart and Falling wedge structure | Source: TradingView
LTC’s recent bullish move broke the lower trendline of the falling wedge, creating a bullish outlook.
Accordingly, the profit target is around 0.006122 BTC. On the flip side, the LTC histogram has formed a bearish divergence between bullish and bearish volume for the past 3 weeks, suggesting a falling wedge breakout that may weaken.
Another wedge, but falling price
LTC price rebounded more than 150% after bottoming near $ 103 on July 20. But the big move up has also sparked the prospect of a bearish reversal, suggesting the rally has stalled.
This pattern is known as a rising wedge and is the exact opposite of a falling wedge. It starts wider at the bottom, but shrinks as the price rises. A bearish confirmation occurs when price drops below the lower trendline and then seeks levels equal to the height of the wedge.
diagram price LTC 3 days and rising wedge structure | Source: TradingView
Depending on the price at which LTC initiates a bearish breakout, the target of the wedge could change between $ 117 and $ 21.
Conversely, an assertive breakout above $ 250 would risk invalidating the rising wedge pattern, which would allow LTC to test $ 300 as its next target price.
Hodler LTC is profitable
The LTC on-chain data shows that price has largely broken through major resistance levels (in terms of magnitude). The strongest sales volume right now is $ 212, according to IntoTheBlock.
Since the price has increased significantly, nearly 20% of LTC holders have entered the “In the Money” zone who are currently HODLing with unrealized profits.
️ #Litecoin decoupled from the #Crypto pack on Monday, and the #OG The asset topped $ 245 for the first time since May. Above all, $ LTC‘s circulation (1.25 tokens per day) continues to widen the gap on its lead from $ ETHwhich may surprise many. https://t.co/P0AZ5tpzI1 pic.twitter.com/ZoY1Lb1ytI
– Santiment (@santimentfeed) November 9, 2021
“LTC split off from crypto on Monday, and the asset topped $ 245 for the first time since May. number Edition of LTC (1.25 million Tokens per day) increases the distance to further ETH, which may surprise many. “
In addition to the market data, the LTC circulation continues to surpass ETH, reaching 1.25 million tokens per day. Rising prices are almost always accompanied by increased network activity, suggesting that more and more traders or investors are buying or withdrawing their assets on exchanges.
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According to AZCoin News