Date: Mon, Dec 02, 2024, 09:20 AM GMT
The cryptocurrency market has been on a bullish ride since Donald Trump's victory in the U.S. presidential elections. Bitcoin (BTC) soared to a record all-time high of $99,655, while its dominance in the market has slightly declined, dropping to 56.86% from a recent peak of 61.53%, which is further allowing altcoins to lead higher.
While Bitcoin takes center stage, altcoins are not far behind. Tokens like XRP, ADA, XLM, and HBAR have already posted massive 3-4X gains over the last month, and now Litecoin (LTC) appears to be the next in line to ride the bullish wave.
Currently trading at $119.65, Litecoin has surged over 17% in the past 24 hours, with a 21% rally over the past week.
Source: Coinmarketcap
Litecoin (LTC): Chart Analysis & Bull Run Comparison
As per chart analysis, Litecoin (LTC) is currently following a similar pattern to the one it exhibited during its 2021 bull run, which signals the potential for another major rally.
2021 Bull Run:
In 2021, Litecoin’s price exhibited a clear upward trend after two critical breakouts:
Black Line Breakout: The first breakout occurred when Litecoin crossed a key resistance trendline (Black Line), marking the beginning of a significant bullish move.
Red Line Breakout: The second breakout came when Litecoin breached its previous high (Red Line), propelling the price into a parabolic rally that ultimately saw LTC rise by 362%.
These two breakouts were the catalyst for a surge in Litecoin's price, which skyrocketed and set new all-time highs during the bull run.
2024 Similar Setup
Fast forward to 2024, and Litecoin is showing a pattern that mirrors its behavior during the 2021 bull run. Here are the key similarities:
Black Line Breakout: Earlier this year, Litecoin managed to break above the $66 level, marking its first significant breakout above the Black Line. This was the beginning of its current bullish momentum.
Red Line Breakout: Just recently, Litecoin surpassed its previous high of $106, breaking above the Red Line resistance. This key breakout confirms that the bullish trend is likely to continue, with $LTC positioning itself for even higher price levels.
These two breakouts mirror the exact conditions that triggered Litecoin’s massive price surge in 2021, setting the stage for a similar bullish rally.
Is A Big Rally on the Horizon?
Given the strong technical signals and the similarities to the 2021 bull run, many analysts believe that a major rally could be on the horizon for Litecoin. If Litecoin follows the same trajectory it did in 2021, there is a potential for another multi-month bull run.
To put this into perspective, a 362% increase from the recent $106 breakout would push Litecoin's price to approximately $465. While this target may seem ambitious, it's important to remember that Litecoin's historical performance has shown that such surges are within the realm of possibility when technical conditions align.
However, it's important to keep in mind that the cryptocurrency market can be volatile, and such price movements are never guaranteed. Always conduct your own research and consider the risks before making any investment decisions.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
