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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Four reasons why XRP price could set new-all time high above $5

XRP price experienced a significant bull run as it rallied roughly 750% since 2021. However, due to the recent correction, Ripple’s year-to-date (YTD) performance is hovering around 268%.

More Ripple News

Shiba Inu price flashes first sign of reversal, eyes 38% upswing

Shiba Inu price dipped below the short-term governing range on June 11 as the crypto market experienced a minor sell-off. However, bulls have managed to push SHIB above the range high, indicating the resurgence of buyers.

More Shiba News

Ethereum might create another opportunity for buyers to kick-start new uptrend

Ethereum price is currently trading below a critical resistance level and is trying to breach past it. A decisive close above the swing high on June 9 will create a higher high and signal the start of an uptrend.

More Ethereum News

Cardano upswing hangs in balance, but on-chain metrics reveal trouble

Cardano price rose 12% after dipping below a crucial support level at $1.451. ADA is currently hovering inside a critical resistance level, ranging from $1.525 to $1.624. Only a decisive close above $1.636 will confirm the start of a run-up.

More Cardano News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP