Litecoin Could Soon See Another Leg Up After Bounce Off Bottom - Price Analysis

  • Short term: A small uptrend could soon be confirmed.
  • Long term: Looking for the bottom of a downtrend.

With Bitcoin (BTC) about as exciting as drying paint this week, some high-cap altcoins are seeing a bit of movement in the past days with Litecoin (LTC) being one of them.

We start on the 12-hour chart, and we can see that what had looked like a failed breakout from a falling wedge in fact turned into a fakeout-breakout from the wedge. Falling wedges are considered generally bullish, and it often transpires that patterns will break the “wrong” way and then fake back the “right” way as has happened here.

Falling wedge worked out after allLTC chart by TradingView

Two important levels on this chart are the 21 and 55 exponential moving averages (EMAs), the orange and purple lines respectively. Price broke out of the 21 EMA barrier that had been containing it, and has now tested and been rejected at the 55. A retest of the 21 EMA area, if it holds, might signal the chance for another leg up on this pairing.

Coming down to the 4-hour chart with MACD indicator, we can see that LTC is just now testing the inflection line of the pattern - looking like a head-and-shoulders pattern. We don’t see much rollover on the histogram yet, but the MACD is well in positive territory which will make a reversal - if it comes - pretty potent.

Leg #2 in the offing?LTC chart by TradingView

Here we are waiting for an outcome, as if price can hold here at the inflection point at about ₿0.0067, we could well see another leg up and higher into the support band - or maybe even out of it.

How has this translated to the USD pairing? Litecoin price has been picking up, and seems to be forming a small ascending triangle which is a bullish pattern. Again, we see the same 21/55 EMA range, although price looks likely to re-break the 21. There has been no volume pickup on this chart (Coinbase), suggesting that traders perhaps are trading out a stagnant Bitcoin.

Ascending triangle on USD chartLTC chart by TradingView

We see the RSI trending up, and if this trend can hold we could take it as a potential buy signal. The histogram is getting consistently higher highs, and the MACD is close to bouncing bullish on the positive side. All in all, the indicators don’t look great yet, but they could look good pretty soon.

As stated above, with Bitcoin so boring, this is the perfect time for a bit of altcoin action. Bitcoin dominance is at extremely high levels, and the risk-reward for some cautious altcoin trades can’t be anything but good.

The views and opinions expressed here do not reflect those of and do not constitute financial advice. Always do your own research.

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Litecoin's SegWit Usage Is Still Far Above That of Bitcoin, Data Shows

Data shows that the percentage of addresses using Segregated Witness (SegWit) on the Litecoin (LTC) network is far superior that the percentage using the technical innovation on the Bitcoin (BTC) network.

Segregated Witness essentially segregates the digital signature - which comprises 65% of the space in a transaction - from the transaction data, to allow block size limits to increase. On the Bitcoin blockchain, block sizes are estimated to be able to reach nearly 4 MB thanks to SegWit, despite the 1 MB limit on the network.

Litecoin, a cryptocurrency often seen as the silver to Bitcoin’s gold, was the first cryptocurrency to activate SegWit on its mainnet. Shortly after Bitcoin activated it as well and quickly surpassed its use, but adoption started slowing down. Blockchair data now shows SegWit usage on the Bitcoin network has been dropping since February of this year, while it has been rising on the Litecoin network.

segwit usage BTC vs LTCSource: Blockchair

SegWit adoption largely depends on cryptocurrency wallet operators and exchanges, as implementing the technical innovation by default allows users to easily transact using SegWit-enabled addresses.

Leading cryptocurrency exchanges like Binance, Coinbase, and Kraken haven’t yet implemented SegWit into their platforms, but have already pledged to do so.  In a now-deleted tweet, Binance CEO Changpeng Zhao claimed the firm was looking to add it by the end of the first quarter of this year.

SegWit adoption is seen as a plus in the cryptocurrency community, as the innovation helps better use blockspace and as a result reduce transaction fees and wait times on the Bitcoin network.

Featured image via Pixabay.