Can Litecoin Lead A Crypto Recovery

In this episode of NewsBTC’s all-new daily technical analysis videos, we are looking at Litecoin, the LTCBTC and LTCETH trading pairs, and how the cryptocurrency could lead the crypto rally and outperform both Bitcoin and Ethereum.

Take a look at the video below.

VIDEO: Litecoin Price Analysis (LTCUSD): August 29, 2022

Litecoin went from an enthusiast favorite during the 2017 bull run to one of the most hated coins due to its laggard tendencies and limited design. Although naysayers do have a point, the cryptocurrency works a lot like Bitcoin but faster.  It also enjoys regulatory acceptance allowing to on the list of major brands like PayPal – in which it is the cheapest coin on the list.

Litecoin Weekly Could Trigger RSI Buy Signal

Looking at the weekly Relative Strength Index and LMACD, things look a lot more healthy for Litecoin than other top cryptocurrencies. With a little push, Litecoin could set a higher high on the RSI. This is a buy signal according to the tool’s creator, J. Welles Wilder Jr. and in the past it started off major bull runs in LTC, especially when combined with a breakout of RSI downtrend resistance line.

Using time cycles, we can see that the RSI, LMACD, and price bottoms at similar points. Hurst cycle theory allows for cycles to be up to 10% out of phase in either direction. The slight discrepancy in the rhythm at our current bottom is totally within an acceptable range. Finally, the LMACD has topped and bottomed at the same converging trend lines all throughout the history of Litecoin price action. Litecoin has potentially found support at this very trend line.

Has Litecoin found a bottom? | Source: BTCUSD on TradingView.com

LTCBTC: Momentum Might Be Ready To Change In A Major Way

Switching over to the LTCBTC trading pair, we can see that the monthly LMACD is turned green and the RSI has broken out of a downtrend resistance line. Much like the USD pair, making a higher high could be a sign of a buy signal. 

The previous cycle on the ratio followed a similar pattern. The first attempt at breakout out and crossing bullish fails, leading to more downside. The second attempt was likely subject to similar sentiment as there is now. The previous failure combined with relative underperformance next to BTC caused Litecoin holders to capitulate right before the eventual turning point – turning pointed that gave over 500% overperformance against Bitcoin.

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