A little over a month ago, Litecoin (LTC) was one of the cryptos exhibiting the greatest level of risk. That’s because, it had broken the 200-day moving average support on the weekly chart. This meant that if bears were to take further control of the market, Litecoin (LTC) would easily have dropped to lows of under $10, which is where it has its next major support. However, as is always the case in the financial markets, the point of maximum financial risk is also usually the point of maximum opportunity.
Clearly, smart money understands this, and was loading up on Litecoin (LTC) at prices below the 200-day moving average, all the way between $21 and $43. That’s because, after trading below this key level for a while, it shot up, and is now on its 3rd week above it. If Litecoin sustains above $43 going into next week, then it will be a clear signal that bulls are finally back. The next target that bulls will be watching will be the 100-day weekly moving average at $82. Since bullish momentum is back in the whole market, chances are that Litecoin (LTC) will hit this level in the near-term. Bullish momentum can be confirmed by looking at Bitcoin (BTC)’s price action.
From a look at Bitcoin (BTC)’s weekly chart, it is clear that Bitcoin (BTC) has bottomed out on the weekly 200-day moving average at $3200. It has bounced off it in the last two months, first in Mid-December then early this month. This is an indicator that bulls now have full control of the market. This also gives bulls even more confidence to get into high potential altcoins such as Litecoin. In essence Litecoin (LTC) hitting and possibly pushing above the 100-day moving average at $82.
Besides, even from a fundamentals perspective, Litecoin (LTC) is a clear buy. Of all the altcoins in this market, Litecoin is one of the closest one to Bitcoin (BTC) in terms of market awareness and adoption. That’s because it has been around for a while and has always positioned itself as a complement to Bitcoin (BTC). It is also listed on pretty much every exchange where Bitcoin (BTC) is listed. This means that it is one of the altcoins that has the highest potential for gains in a bull market. It inspires more confidence than most other altcoins.
On top of that, its adoption is growing exponentially. The pay with Litecoin campaign has been quite successful in spite of the prolonged bear market. The Litecoin Lightning Network is on a growth path too, and will add to the rate of growth in Litecoin (LTC). The result is that, Litecoin (LTC)’s intrinsic value will keep growing, and will reflect in its price over time. This could see Litecoin (LTC) easily break all major resistance points in the medium term. With these fundamentals at play, Litecoin (LTC) could easily test new highs within this year. Its future is bright, and bullish sentiment is growing.