- The Litecoin/Tether chart was completely different than the Litecoin/Bitcoin chart
- Investors would debate whether LTC could match BTC's performance this year
Litecoin [LTC] performed well on April 2nd, leading a rally while Bitcoin [BTC] Prices continued to fall. However, later that day, LTC recouped almost all of the gains made a few hours earlier.
However, the nearly 15% increase from $95.6 to $109.86 came amid a sharp increase in trading volume. This gave investors hope that LTC could have started an uptrend.
Examining HTF price action – has Litecoin initiated an uptrend?
Source: LTC/USDT on TradingView
The breakout above the Q4 2023 range (purple) highs at $79.5 turned the D3 structure in a bullish direction. The technical indicators on the 3-day chart were clearly positive. Trading volume, as mentioned, was consistently higher than all of 2023 (with one exception – June 30).
The D3 RSI and CMF also saw bull strength in March. Together, they showed significant capital flow into the LTC market. This has driven prices higher in recent weeks.
It was extremely encouraging that the $80 level was retested as support in early March. The fact that bulls were able to defend it suggested that buyers were persistent.
A look at the weekly chart showed that a move above $115 would indicate a bullish market structure on the 1-week chart. If the LTC bulls pull this off, the price action from May 2022 to press time would have been a long preamble, a consolidation phase before the next bull run.
How does Litecoin compare to Bitcoin?
Source: LTC/BTC on TradingView
While Litecoin has a bullish structure against USDT, a stablecoin, it has been in a strong downtrend against Bitcoin since the beginning of 2023. The Fibonacci levels showed that more losses were to be expected and highlighted where the LTC/BTC pair would be heading.
The chart above shows that Bitcoin has significantly and consistently outperformed Litecoin. This exacerbated the argument that Litecoin was an outdated token whose bull run was far dwarfed by newer, shinier tokens.
Source: Santiment
Examination of Santiment metrics found that the average dollar investment age fell sharply last month as Litecoin prices rose. This was a bullish sign as MDIA usually enters a strong downtrend when prices are trending higher.
It's a sign that older coins are coming back into circulation. A similar trend was observed in the period from May to August 2020. As Litecoin began an uptrend, MDIA began to fall rapidly.
Read Litecoins [LTC] Price prediction 2024-25
The dormant circulation saw significant spikes in February when it was below the $80 resistance. This highlighted waves of selling pressure, but not much activity has been evident over the past month.
The MVRV ratio was in an uptrend and showed that holders were making a profit.
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