On Monday (February 22), popular New Zealand-based crypto analyst Lark Davis (@TheCryptoLark on Twitter) told the over 218K subscribers of his YouTube channel about the technical and fundamental reasons for his bullishness on Litecoin.
David started with technical analysis:
“We’re only looking at the kind of the higher time frame stuff since it really helps us put into focus the kind of mega breakout that is underway for Litecoin right now. We can see here on the weekly charts that Litecoin has just broken out from what is really just this incredibly big double bottom, which is a bullish chart pattern.
“Now, that double bottom was formed over the entire course of the bear market. we have now seen a successful breakout from this bullish pattern and even had… this retest of that line of resistance with the green line on the chart here. So, we had a retest of that, flipping it from resistance into support, basically setting Litecoin up on a launchpad for a massive price run, technically anyway…
“Little old Litecoin still around 45% under its previous all-time high, which is pretty surprising considering just how bullish the entire market is right now and that Litecoin is and basically always has been a top 10 crypto asset, remains very very popular with a strong community of people behind it. Litecoin has just seen a rejection at a very important area of historical resistance… What I would love to see right now is a pullback to the bottom green line with a price point of around $185… could be a good area for an entry for the coming moon mission… definitely an area of interest for me as a buyer looking to get a position in Litecoin.
“Anyway, if we can break that area of resiatnce, then we need to crush $420 to finally enter into price discovery for Litecoin. Now, Litecoin, much like with other major assets, will likely spark a parabolic price rally when we do pass over those previous all-time highs… I think that a price of $1000 per Litecoin during this bull run really not that crazy of a target. In fact, maybe it’s even too conservative…“
As for the fundamental bullish catalysts that could push the Litecoin price higher, Davis names three:
- The upcoming MimbleWimble (MW) upgrade, which will add privacy features to Litecoin. Davis says that there will be “a big code release” entering a review phase on March 15, and that this progress “could just be enough to give it that little bullish spark for some good old-fashioned price-mooning.”
- The upcoming Spark (FLR) token airdrop to LTC holders, which was announced by Flare Networks on January 8. Davis says that Flare’s previous airdrop to XRP holders “caused a massive price run shortly before the airdrop happened” and that “a similar event for Litecoin is likely.”
- Litecoin is listed on all of the main crypto exchanges, and that it even available to buy via a PayPal account (for now, only in the U.S.), which means that many retail investors who are put off by the high price of Bitcoin might decide to buy the seemingly much better value Litecoin instead.
In case you are wondering how much money Simmons has put into LTC, here is the answer from Simmons himself:
Tomorrow (February 23), the Penn Blockchain Club is hosting a Fireside Chat with Litecoin creator Charlie Lee:
According to data by CryptoCompare, Litecoin, which is currently the eight most valuable cryptoasset by market cap, is $221.84, down -1.8% (vs USD) in the past 24-hour period but up 78.35% (vs USD) in the yer-to-date period.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.