A rising tide lifts all boats. As Bitcoin ventures off towards $70,000, altcoins are rallying around the king. Bitcoin started the party, but altcoins will be ready for the afterparty. This one could last a few months.
Let’s dig in.
Litecoin Rallies 19% to $260 as MWEB Dev Update Looms
Litecoin rallied to the $260 level on Tuesday — surging over 19% in a little more than 24 hours as it attempts to join its peers in leading the cryptocurrency space.
Having run flawlessly for over a decade, Litecoin is one of the best performing coins among leading cryptocurrencies, with a pristine track record that might just tempt investors into dipping a toe into the project.
Check out the full article here!
Litecoin levels to watch
Litecoin is on a tear. The coin broke out of a penant structure where it matured for weeks, and rocketted to $295 earlier today. Since breaking out of the pattern, LTC/USD is up %47.6.
If bulls close a weekly candle above $267, then that would cement a weekly trend reversal when considering the macro Super Trend indicator. A Bitcoin-led sell off would likely cascade into altcoins, however, which is something to keep in mind. In fact, price-action below the S/R pivot could even take place this week, which would open the door to LTC/USD revisiting the $239 level.
This is the level where many investors were trapped by the fake ‘Walmart’ news story that emerged on September 13., wrecking the market. If Litecoin cools off, both levels would likely provide decent support on multiple time-frames.
On the flipside, upside targets remain comparitively astronomical, with major macro resistance levels being the 1.618 fib at $607, the 2.618 fib at $914 and the 3.618 fib at $1227, respectively. Considering the monumental LTC/BTC technical breakout and the pair’s historical performance, I expect all three dollar-priced targets to be tagged before the cycle comes to an end.
This can happen faster than most people think.
Compound finance meanders below the pivot
As you may know, Compound finance has been a protocol which I’ve been following for sometime. Several updates to the protocol have finally resolved the buggy distribution issues and the DAO’s twitter handle has been actively providing updates on this. This is not a sponsored article.
Technically, COMP/USD bounced from a long-term trendline and a technical bottom. At $358, the coin is below the pivot point, which if reclaimed would open the door to $500-plus prices. Considering the long-term context, it’s unlikely for COMP to remain range-bound in a market where everything is rallying.
As such, a conservative target should be the 0.618 fib extension level ($640). Using the same fib tools, the second macro target rests in the 4-digit realm — $1,360 — which is the 1.618 fib level.
If COMP/USD is on the precipice of following the market to all time highs this cycle, prices shouldn’t revisit the range bottom again.
Monero to follow Litecoin?
A recurring techncial theme among ‘legacy’ coins is the daily pennant structure. However, several legacy (so to speak) coins have yet to have their moment in the sun. Monero ($XMR) is one such coin which will likely be the beneficiary of capital flows in the not-too-distant future.
Technically, XMR/USD is on the verge of breacking out, much like LTC/USD was last week.
Bulls will look to seal the deal above $290, which would likely propel the coin to rally to its measured move target of $420. On a macro perspective, the first fib extensive level of 1.618 rests at $720. Keep in mind that even if this is a super-cycle, there’s no such thing as a straight line up.
Indecision Grips DYDX
DYDX/USD has yet to catch up with the market breakout.
The token is native to the DYDX decentralised exchange, which only requires an internet connection and a metamask wallet to function (like other DEXs).
Unless $15.3 is decisvely lost (daily close), a short-term target for the coin would be $20 and $23, respectively, if bulls are able to pull it off. The coin has been rejectd by the $17.7 level on a daily closing basis since it bottomed on October 27th.
Capturing this pivotal level would likely open the door to higher targets, with the 1.618 fib extention target being $36.
All in all, it’s time to make hay while the sun shines. Dips are still buying opportunities until proven otherwise.
Catch you later.
p.s. This is my opinion. It is not financial advice.
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Originally published at https://mailchi.mp.