What Is the Outlook for LTC As High Market Cap Well-established Coins Continue to Rise?
According to Gate.io’s market data, in the past 24 hours, high-market-cap established altcoins have continued their upward momentum, with LTC, HBAR, SAND, ZEC, LINK, AVAX, and others experiencing substantial gains. Among them, Litecoin (LTC), the old-school high-market-cap altcoin and a pioneering payment project, has repeatedly hit new highs, maintaining an intraday increase of 4.16%.
LTC was founded in 2011 by Charlie Lee, a former Google engineer, and it employs Bitcoin‘s code and certain characteristics within its blockchain, aiming to be a “lighter version of Bitcoin.” As the first digital currency based on the Scrypt algorithm, LTC boasts faster confirmation times than BTC, with confirmations occurring every 2.5 minutes. It requires less mining processing power and is easier to mine on ordinary computers.
LTC Market Data
Latest Price: $129.17
24-hour Change: +4.40%
24-hour High: $139.70
24-hour Low: $114.88
24-hour Volume: $120.49M
24-hour Net Inflow: $80.85M
Bulls vs. Bears Ratio: 2.35:1 (Bulls Dominant)
RSI: Severely Overbought, Short-term Trend Biased Downwards
Support Level: $100~$106
Resistance Level: $135~$140
Trading Strategy Suggestions
Strategy 1: Short-term Upside Sell-off
Direction: Bearish
Entry Price: $131 (Close to Short-term Resistance Level)
Stop Loss Price: $140
Target Price: $117 (Close to Short-term Support Level)
Reason: The current price has rapidly broken through the high set in July 2023 without pause. According to technical analysis, the market may experience profit-taking. On the 4H chart, the RSI is severely overbought, and a bearish inverted hammer candlestick pattern followed by a bearish candlestick indicates short-term profit-taking by bulls. If the price rebounds near $131, a short position can be attempted.
Strategy 2: Medium-short Term Rebound Buy-in
Direction: Bullish
Entry Price: $104−$106
Stop Loss Price: $87
Target Price: $130
Reason: The RSI is severely overbought, suggesting a possible short-term correction. On the 4H chart, the support level is at $104−$106. This level previously acted as resistance on November 23rd and 30th but was strongly broken last weekend, converting from resistance to support. It is suitable for medium to long-term traders to take advantage of the support level for profit-taking.
Outlook
LTC boasts an active community and a relatively stable market position. As a peer-to-peer tool, LTC is utilized in digital payments, cross-border transfers, asset digitization, and other fields, allowing unrestricted transfers and transactions for any holder worldwide.
However, its ecological development has stagnated, and it has even mocked itself as a memecoin recently.
In summary, LTC’s recent surge in popularity demonstrates its status as an established altcoin, but this is largely driven by the excitement of fund rotation. Investors should approach with caution and reduce FOMO (Fear Of Missing Out).
