Litecoin, fondly referred to as the ‘Digital Silver’ to Bitcoin’s ‘Digital Gold’ in supporter circles, has quietly slipped below the radar over the previous couple of years. The final time that this altcoin made headlines was again in 2023, which was a halving yr. Since then, it has trended beneath the $100 degree because the crypto market has struggled to carry up good points. Now, as soon as once more, the altcoin could also be gearing up for one more main transfer as it’s near finishing a uncommon Golden Cross formation.
Litecoin Golden Cross Formation Is On The Horizon
Golden Cross formations for Litecoin have been uncommon regardless of having been out there for over a decade. There have solely been two Golden Cross formations within the historical past of the cryptocurrency, which means that this incidence of this formation carries important implications for the worth. The Golden Cross formation occurs when the 50-Week and the 200-Week shifting averages cross one another, beckoning the return of the bulls.
Crypto analyst and CMT-certified skilled Tony “The Bull” Severino identified the significance of this formation. He highlighted that one other Golden Cross is about to type for Litecoin and used the efficiency of the earlier formations to indicate what may occur forward of this cross.
The primary time that this Golden Cross appeared was again in 2017, and the crypto analyst revealed that the Litecoin value had seen a 700% improve forward of the cross. Then once more, in 2021, there was one other Golden Cross of the 50-Week and 200-Week shifting averages, which noticed a 450% rally.
Nonetheless, one thing worthy of notice is the truth that the Litecoin value rallies have at all times occurred earlier than the Golden Cross formation was full. Given this development, it’s potential that Litecoin is on the cusp of one other main value rally earlier than the formation is full.
There additionally appears to have been some diminishing returns in how a lot the Litecoin value has rallied in response. Subsequently, it’s potential that the present rally might not be as excessive because the earlier ones, however may nonetheless see an over 200% improve regardless. Moreover, the analyst factors out {that a} sizable rally would set off the Golden Cross.
At present, the Litecoin value remains to be buying and selling at round $87 on the time of writing. So, a 200% rally would put the altcoin’s value above the $200 mark. If it does comply with the return patterns of the earlier appearances of the Golden Cross, then a 450% rally would put it above $300, and a 700% rally would set it on a path to $500.
Featured picture from Dall.E, chart from TradingView.com
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