Litecoin and Its Potentially Slipping Power
Is Litecoin losing steam?
Sixth-Largest Currency Is Slipping Down
Cryptocurrencies have been experiencing a solid bull run for the past two weeks. On April 3, bitcoin, for example, spiked beyond the $5,000 mark for the first time in roughly five months. Prior, bitcoin had been trapped in the doldrums for most of 2018.
Starting in January of that year, the father of crypto began sinking from the $20,000 high it first experienced in December 2017. It ultimately came to a standstill at the $6,000 range, where it hung for most of the summer.
However, by the time Thanksgiving rolled around, things took a nastier turn, and bitcoin fell to about $3,600, where it remained for some time. The situation looked very grim, and with no bullish trends in sight, many enthusiasts and traders found themselves wondering when (or even if) bitcoin could ever recover.
It appears that recovery period is here, though there’s still plenty of work to be done. At press time, bitcoin is trading for about $5,200, which isn’t quite where it was a year-and-a-half ago.
The good news is that this bullish behavior has rubbed off on many of its cousins. Ethereum – the second-largest cryptocurrency by market cap and the number one competitor to bitcoin – shot up to $176 recently after trading for less than $100 for several months. Bitcoin cash shot past $300, and Litecoin was trading for just over $100 after several months of being trapped at $50 and $60, respectively.
The idea of the crypto boom coming to an end for any currency is a disturbing one, especially since it hasn’t been that long since it began. In addition, Litecoin has been one of the year’s top performers, climbing approximately 162 percent since 2019 first appeared. Compare that to bitcoin’s measly 40 percent. While bitcoin may be the biggest cryptocurrency out there (that’s why we pay attention to it so much), it’s not always the top player.
Unfortunately, analyst Brian Donovan of crypto brokerage Bit Ooda is saying that a “downward wedge” is rearing its ugly head on the latest Litecoin charts, and he’s predicting that the sixth-largest cryptocurrency by market cap could be headed towards $75 in the coming weeks.
Litecoin’s “Evil Wedge”
We have seen a downward wedge forming over the last week or so. We look for potential breakdown of that $75 near-term support.
One thing to remember is that it’s still early in the game. Presently, Litecoin is trading in the $80 range, which means a potential breakdown will only result in a five-dollar loss. Thus, it’s time to stay positive.