Litecoin, fondly referred to as the ‘Digital Silver’ to Bitcoin’s ‘Digital Gold’ in supporter circles, has quietly slipped underneath the radar over the previous couple of years. The final time that this altcoin made headlines was again in 2023, which was a halving 12 months. Since then, it has trended beneath the $100 stage because the crypto market has struggled to carry up positive aspects. Now, as soon as once more, the altcoin could also be gearing up for an additional 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 available in the market for over a decade. There have solely been two Golden Cross formations within the historical past of the cryptocurrency, which means that this prevalence of this formation carries important implications for the value. The Golden Cross formation occurs when the 50-Week and the 200-Week transferring averages cross one another, beckoning the return of the bulls.
Crypto analyst and CMT-certified professional Tony “The Bull” Severino identified the significance of this formation. He highlighted that one other Golden Cross is about to kind for Litecoin and used the efficiency of the earlier formations to point out what might 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 worth had seen a 700% enhance forward of the cross. Then once more, in 2021, there was one other Golden Cross of the 50-Week and 200-Week transferring averages, which noticed a 450% rally.
Nevertheless, one thing worthy of word is the truth that the Litecoin worth rallies have all the time occurred earlier than the Golden Cross formation was full. Given this development, it’s attainable that Litecoin is on the cusp of one other main worth rally earlier than the formation is full.
There additionally appears to have been some diminishing returns in how a lot the Litecoin worth has rallied in response. Subsequently, it’s attainable that the present rally is probably not as excessive because the earlier ones, however might nonetheless see an over 200% enhance regardless. Moreover, the analyst factors out {that a} sizable rally would set off the Golden Cross.
At the moment, the Litecoin worth remains to be buying and selling at round $87 on the time of writing. So, a 200% rally would put the altcoin’s worth above the $200 mark. If it does observe 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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