Litecoin leading the most recent run-up, and these altcoins may follow


  • Litecoin's breakout this week paints a bullish picture for larger altcoins like Ethereum and Chainlink.
  • Ethereum is on the verge of completing the leg to $520, but the resistance at $495 must come down.
  • Chainlink eyes a breakout to $20 as long as buyers overcome the hurdle at the descending parallel channel.

Litecoin has stood out this week after shooting upwards by more than 23% in 48 hours. In previous run-ups, Litecoin tended to lead the altcoins' breakout. Tokens such as Ethereum (ETH) and Chainlink (LINK) joined the rally, spiking to higher levels.

Litecoin's recent rally could signal an uptrend in other altcoins

Litecoin seems to be leading the way for major altcoins, and perhaps ETH and LINK will follow. A glance into the past reveals that LTC is notorious for kick-starting bull runs for these tokens. For example, Litecoin surged in April 2019 by more than 67%, from $60 to $100. The impressive rally took place before the remarkable recovery witnessed across the cryptocurrency market in May 2019.

LTC/USD price chart

LTC/USD daily chart

Ethereum commenced its bullish momentum at the beginning of May. The price action was majestic so that Ether almost doubled in value from $145 to $288, achieved on May 30, 2019.

ETH/USD price chart

ETH/USD daily chart

Chainlink, like Ethereum, followed in the footsteps of Litecoin. LINK soared by 268% from $0.4 toward the end of April to $1.5 in mid-May. With such a massive breakout, LINK and ETH may likely rebound to hit new yearly highs before the year comes to an end.

LINK/USD price chart

LINK/USD daily chart

Ethereum rally is in the initial phases

At the time of writing, Ether is trading 32% higher from the lowest level in November. Similarly, the smart contract token has stepped to new yearly highs after overcoming the $490 seller congestion zone. A break above the resistance at $495 may quickly push Ethereum to $520, as discussed earlier this week.

ETH/USD price chart

ETH/USD daily chart

As for Chainlink, a possibility exists for a breakout to $20 if the immediate ascending parallel channel resistance is broken. On the downside, the oracle token is trading above the 50-day Simple Moving Average. Additionally, the channel's middle boundary is in line to prevent losses from resuming towards $10.

LINK/USD price chart

LINK/USD daily chart

On the other hand, history shows that when Litecoin is leading a bull-run, it reverses before starting the spike fresh alongside other altcoins. It also explains the ongoing retreat after the 23% rally. LTC hit a wall at $77 and is currently trading at $73.

LTC/USD price chart

LTC/USD 4-hour chart

The Relative Strength Index reinforces the bearish outlook following a bearish divergence formed by hitting a higher high in the overbought region followed by a higher low. If support at $70 fails to hold, LTC might revisit the 50 SMA, marginally below $65. Other critical levels to keep in mind include the 100 SMA and the 200 SMA.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bloodbath in the crypto markets as investors realize profits

The cryptocurrency market has painted red on Thursday during the European session as traders and investors have started taking profits. As discussed earlier in the day, a correction was around the corner, mainly due to the cryptocurrency fear and greed index at a record high.

More Cryptocurrencies News

Cardano Price Prediction: ADA must overcome a massive supply barrier to extend a recovery

Cardano (ADA) has climbed to the 8th position in the global cryptocurrency market rating. The coin hit $0.194, the highest level since July 2020, on November 24, before the correction started.

More Cardano News

Greed among cryptocurrency investors soars to the highest level ever recorded

The cryptocurrency market has been on a consistent and remarkable rally since the beginning of November. Most crypto assets are trading at levels not seen since 2017 and early 2018.

More Cryptocurrencies News

Bitcoin price shows four signs of a market top that may lead to a correction towards $13,000

Downside corrections are not something to be fearful of. They are an essential part of a bullish trend, and a sell-off always comes after a strong rally, just like the dusk always comes after the dawn.

More Bitcoin News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: BTC makes new yearly highs while its network activity looks worrisome

Bitcoin has lived through the best week since February 2018. The pioneer digital currency price gained over $2,000 in less than seven days. The bullish momentum allowed it to reach a new multi-year high of nearly $18,800, marking November 2020 one of the strongest bullish months ever. 

Read the weekly forecast

BTC

ETH

XRP