Litecoin Primed for Reversal as Altcoins Surge — Price Analysis

  • Short term trend: Definitely overheated and likely to see selling
  • Long term trend: An uptrend is in the process of confirming

The crypto markets have been burgeoning in the past week or so, as Bitcoin (BTC) has led the way up to the limits of its long term downtrending structure. Both major and midcap altcoins have started to shine, and leading altcoin Litecoin (LTC) has been among them with some very interesting strength coming in.

We start with a 3-day LTC/Bitcoin chart, and immediately notice the huge shift in the volume profile (Binance), with considerable buying coming in over the past week or so. We also see that a bull divergence is showing up on the RSI. Litecoin has surged about 25% from its recent bottom, but its rise was stopped exactly at the December 2018 bottom at ₿0.00688.

Very promisingLTC chart by TradingView

Here, we have another shot at a reversal of Litecon’s brutal downtrend, in play since April 2019 (versus Bitcoin). We see that a bullish histogram contraction is cooling off, so far, and a reversal is nowhere yet confirmed. But it looks very interesting.

On the LTC/BTC daily chart with Bitcoin comparison, we must note the new paradigm of altcoins: they have begun to rise with Bitcoin, rather than dump whenever Bitcoin has a big move. This is a dramatic reversal from the H2 2019 paradigm, and is seeming to go hand-in-hand with a decline in Bitcoin dominance.

Rising with Bitcoin, as dominance fallsLTC chart by TradingView

It is also notable that Bitcoin’s price has continued to rise even as its market dominance has started to ebb away from the historically high 70% area.

Finally, on a daily LTC/USD chart, we see that the uptrend from the past couple of weeks has reached overbought conditions, and that price has run far away from the moving averages. With a nice reversal candle put in yesterday, we are likely to see a selloff back down into the blue support zone.

Likely retest of supportLTC chart by TradingView

Ultimately though, Likecoin looks very good for a long term reversal. It has been stuck under the 55 EMA since July, and this level looks to have been solidly retaken by now. Many altcoins look ready for reversal after months of brutal selling and then accumulating – and Litecoin led the 2019 rally from the bottom, lest we forget.

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

Featured Image Credit: Photo via Pixabay.com

Crypto Market Update for 24 February 2020: BTC, ETH, ADA, and TRX

Siamak Masnavi

This article provides an overview of how Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), and TRON (TRX) have been doing over the past 24-hour period, and covers recent news that might have affected their prices (or might do so in the future).

To give you a rough idea of how well the crypto markets are doing today, 18 out of the top 20 cryptoassets (by market cap) are currently in the red (against the dollar).

All market data used in this article was taken around 10:00 UTC on 24 February 2020 from CryptoCompare, which also provided the price charts shown in this article.

Bitcoin

BTC-USD 24 Hour Chart on 24 Feb 2020.png

BTC-USD is trading at $9,715. This means that the Bitcoin price has been under the $10K level since February 20. Still, Bitcoin has still managed to gain +37.60% against USD in the year-to-date (YTD) period.

As for why Bitcoin is having trouble breaking through the $10K level, one theory is that Bitcoin is currently being seen more as a "risk-on" rather a "risk-off" asset; another is that Bitcoin whales are manipulating the market.

Here is prominent crypto analyst/trader Josh Rager with some technical analysis of Bitcoin's latest price action:

Ethereum

ETH-USD 24 Hour Chart on 24 Feb 2020.png

ETH-USD is trading at $265.99. Although ETH-USD has dropped 0.92% in the past seven-day period, for the YTD period, it is up +103.37%.

Cardano

ADA-USD 24 Hour Chart on 24 Feb 2020.png

ADA-USD set a six-month high on February 14 when it hit $0.07083. Since then, it's been going downhill.

Although the 7-day and 10-day pictures look bad, Cardano's return-on-investment (ROI) figures (against USD) for the 30-day, YTD, and 90-day periods look quite decent, being +36.99%, +76.77%, and +60.44% respectively.

On February 21, IOHK tweeted that the Cardano network had successfully carried out a scheduled network upgrade (a hard fork) to bring in Ouroboros BFT (a new consensus mechanism):

 TRON

TRX-USD 24 Hour Chart on 24 Feb 2020.png

TRX-USD is trading at $0.0204, which means that TRON is currently the 16-th most valuable cryptoasset by reported market cap.

TRX-USD has dropped -6.35% in the past 7-day period, but so far in 2020, it is up +54.45%.

Earlier today, in an article for Coindesk, Alexander S. Blum, the Chief Operating Officer of crypto finance firm Two Prime, wrote:

"Viewed through the lens of traditional finance, TRON is acting pretty predictably. It is acquiring more market share through the acquisition of weakened competitors, like BitTorrent, and their networks while promoting their retail financial product. They’re performing a balancing act between being a financial product and a technical one...

"Justin is leading TRON as a for-profit business pretty well. Why does that irk many hardcore developers? For those in the Western world sticking up their noses at TRON, it’s worth reflecting on how deeply elitist it is to judge from a position of pure technical idealism...

"The emergence of TRON in highly competitive Asian markets is commendable. They are pioneering a new business model and creating wealth ex nihilo – out of thin air – because they focus on what works today. Their users share the company’s pragmatism. TRON, EOS and Ripple are pioneering community-centric financial products that offer exciting new models for wealth creation."

Featured Image by "AhmadArdity" via Pixabay.com