Litecoin
Litecoin’s Long-Term Limbo: Struggling Against BTC’s Dominance & Market Highs
In arecent analysisby Benjamin Cowen, the CEO and Founder of ITC_Crypto, Litecoin (LTC) has faced a significant disparity in its performance over the years, with 2019’s high of $146 surpassing the 2023 high at $115. This assessment is grounded in the assumption that the yearly high point has been reached.
#LTC went higher in 2019 ($146) than it did in 2023 ($115).
— Benjamin Cowen (@intocryptoverse) August 25, 2023
Of course this assumes the yearly high is in (which I think it is).
So the Fed prints trillions and #LTC puts in a lower halving-year high.
Just another reason why #LTC is too much risk for very low reward. pic.twitter.com/PrMLoIFbSD
The rather lackluster performance of LTC in a year of extensive quantitative easing by the Federal Reserve has raised questions about the coin’s potential as an investment option.
LTC’s struggle becomes even more evident when considering its performance against Bitcoin (BTC) over the last decade. Since 2013, LTC has witnessed a staggering 95% drop in value against BTC.
This substantial decline has prompted skepticism among market observers, who have been hearing promises of LTC’s resurgence for years. The question arises: How many more years will it take LTC to demonstrate a substantial recovery?
A modern portfolio analysis utilizing the Monte Carlo simulation has shed light on the optimal allocation strategy for investors interested in BTC, Ethereum (ETH), and LTC. Surprisingly, the data indicates that a 0.0% allocation to LTC is necessary to maximize risk-adjusted returns, as indicated by both Sharpe and Sortino ratios.
This revelation underscores the challenges that LTC faces in terms of providing a favorable risk-reward balance within a diversified portfolio.
Despite the prevailing optimism among some quarters about LTC’s macro outlook, the historical data suggests a different story. While there have been sporadic instances of LTC gaining momentum against BTC, the overarching trend showcases a pattern of LTC consistently falling short, often resulting in lower highs.
Litecoin: Technical Indicators Suggest Potential Reversal
As of the latest data from CoinMarketCap, Litecoin (LTC) is currently trading at $64.65, reflecting a 1.26% decline over the last 24 hours. The cryptocurrency has seen a 0.95% decrease in value over the past seven days.
While Trading Paradise, a prominent provider of technical indicators solutions for TradingView, recently shared insightsvia a tweet. The focus was on Litecoin’s 1-day (1D) chart, indicating significant market movements. An orange candle, signifying a bearish reversal, had made its presence felt.
#Litecoin update 1D chart. Bearish reversal, orange candle played nicely. Now is forming a bullish reversal candle, blue candle. As soon we don't close below the bullish support line the reverse is still in place. pic.twitter.com/kSZ8hRMjDy
— Trading Paradise (@Trd_Paradise) August 25, 2023
However, the recent price action shows a promising development as a bullish reversal candle, represented by a blue candle, is forming. The analysis hinges on the crucial level of the bullish support line. The price mustn’t close below this support line for the anticipated bullish reversal to hold weight.
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