Litecoin’s Incoming Shock and Awe Rally
Litecoin is no longer at a crossroads. The blue chip cryptocurrency has teased its way to the 3-digit mark again, witnessing several technically compelling structures which indicate an auspicious continuation of the OG monetary layer one — as is fitting.
Litecoin’s technical tailwinds
Litecoin/Dollar climbed to $105.7 on Monday, following a volatile two-weeks during which time the coin both rallied 37% and retested the breakout origin shortly thereafter. Indeed, it’s rare for LTC/USD price-action to be anything but a wild ride.
At a glance, Litecoin/Dollar is testing the 200 weekly EMA (wEMA); a pivotal level which historically dictates significant momentum shifts.
https://www.tradingview.com/x/Qac7wiUF/
The move also broke a longer term technical down trending resistance present since Nov. 2021, confirming a change in the direction of the trend. The shift took place following a 10-month period of accumulation between $100 and $40, with consistent higher lows eventually printing out a double-bottom structure.
The local upswing forms part of a larger 6-year consolidation structure characterised by higher lows and an apparent relative ceiling of around $420. A measured-move breakout target beyond all time highs places Litecoin at around $5,000, potentially.
As the asset evolves and survives its plentiful battle scars, its accompanying developing technical picture is increasingly positive. It simply will not go away. In actual fact, Litecoin is going through its own distinct maturity curve, and the path it’s chosen is up and to the right.
For the purposes of this write-up, we shall not dive into fundamental analysis. You can find out more about Litecoin fundamentals and LTC in general here.
More information is available on www.chrisoncrypto.com
Bear rhetoric is simply not compelling
Apart from the positive technical picture, Litecoin is affronted with an astonishingly weak bear case, which lends credence to the likelihood of a stunning ‘shock and awe’ rally. To this day, bears tout the fact that the LTC founder, Charlie Lee, exchanged his mined coins in 2017. Never mind that he continued to work on LTC regardless, and matched donations to the LTC foundation; apparently, this is some sort of ‘argument’ against LTC.
We’ve truly outdone ourselves now haven’t we?
Mind you, these coins were fairly acquired alongside everyone else in an open market; there was no pre-mine or insider funding round unlike most of the top cryptocurrencies (SOL, ETH, XRP, ADA, Polygon). Somehow these coins get a pass, yet Litecoin is held to an impossible standard, despite having beaten every top coin by a country mile when it comes to fairness, not to mention user adoption, hashing power, decentralisation (no theatre), and all the qualities that render a cryptocurrency praiseworthy.
These bear case ramblings betray a deep seated irrational contempt, or contempt for the sake of it, solely because that’s been the mantra for 6-years and counting; repeated by halfwits and promoted by opportunistic detractors.
And even if, which I do not for a moment believe, there was a modicum of reason to these ravings, Litecoin is still a top 20 cryptocurrency (there are over 2 million coins and tokens now). Does that not answer your question? Have Litecoin users thrown in the towel? Does 6-years of accumulation with an ever-increasing floor price not answer your question?
I submit that it does — wholly and unequivocally.
Litecoin solved a practical problem without sacrificing the fundamental tenets of decentralisation; the trade-off being that a new asset was created. This is not a bad thing. It’s only natural for a basket of worthy cryptocurrencies to emerge as generally accepted and trusted L1s. Today, Litecoin is both widely known and used — just ask a random Bitcoin user which L1 he uses to transfer value.
Bitcoin and Litecoin came about under different circumstances, but in those circumstances fairness was central to both. Fairness is not just a word to be bandied out for social brownie points, or something to pay lip service to (as most projects do). Fairness is a perspective that goes hand in hand with the founding principles of this space; principles most users have forgotten. After all, if a crypto asset is not decentralised, censorship resistant, and absolutely scarce, then it is merely an extension of fiat.
If your chosen project has gone full circle, you’ve lost the plot.
Beyond that, I take personal pride in being part of something that does not advance the kind of fraud and crime we witnessed in 2022 at a fundamental level; but that’s a story for another time, perhaps.
To this day, Litecoin has no equal, save BTC. The shock and awe rally is exactly what it sounds like. Value will go where it is respected; that’s why four digits is programmed.
Enjoy the ride.
Onward!
Dear readers,
The purpose of this newsletter analysis is to provide context to current events and cryptocurrency markets. It is released every Tuesday. I am not perfect and this is not a science — nor is this newsletter analysis a signals service or financial advice. While I cannot promise perfection I do my best to be honest and transparent.
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ltcmweb1qqt793qmlrvmj2ldu50ecxaud358fegsayls59wttgxc3f8cahdu7jq6np8le3g88q9p77w2dr2ennh2nuxzjg5ujkvq8x434pg74std0yg7kc4g6
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