Litecoin price reached a high of $ 400 amidst an overall crypto market price boom. Litecoin price reached an all-time high of $ 400. But LTC is at risk of overheating. Litecoin (LTC) broke the record today, reaching an all-time high price on Bitstamp. As we have stressed that the risk of investing in Litecon who stressed in his state that has become expensive very quickly. The world’s 10th largest cryptocurrency in terms of market capitalization gained 215% from $ 124 to $ 413 earlier this year. The big rally has surpassed the traditional markets for a year now. Many independent analysts now predict that the move will rise to $ 500.
Litecoin price action
The noticeable returns in the Litecoin market came just after a large upward movement in the cryptocurrency market. Competitors of Litecoin’s competitors, ETH, XRP, Cardano (ADA) and Dogecoin, which are silver Bitcoin , made significant gains.
Jason Lau, the operating manager of OKCoin, a San Francisco-based crypto service company, underlined an inverse correlation developing between Litecoin and Dogecoin , saying that the DOGE / USD exchange rate fell 12% in response to the increase in the LTC / USD rate. Meanwhile, the Litecoin Dominance Index, a measure that measures Litecoin’s strength against the rest of the cryptocurrency market, rose from 0.96% on Sunday to 1.11% on Monday. This reflects an emotional shift for Litecoin markets as other alternative cryptocurrency rallies are showing signs of cooling.
— Jason Lau (@jasonklau) May 10, 2021
Is Litecoin overbought?
The LTC / USD daily chart shows the LTC RSI at a twist around 79.02. This is 9 points above the overbought threshold that previously led to price corrections.
Typically, a short-term reversal in the Litecoin market – when the RSI peaks – leads the price to test the 20-day exponential moving average (green wave) as an intermediate support. Meanwhile, an extended sell allows traders to view the 50-day simple moving average (blue wave) as the primary negative target. Therefore, a potential pullback after the recent explosive move risks sending LTC / USD to $ 252-310, based on the current moving average value.
Far from techniques, macroeconomic catalysts continue to support cryptocurrency markets in general. A study by Charles Schwab showed that more than 51% of Generation Y and Z investors are more likely to invest in cryptocurrencies than traditional stocks. Their interest in the emerging digital assets sector has increased after fears of inflation and dollar devaluation, especially as central banks around the world responded to the coronavirus epidemic with their relaxing monetary policies. For example the United States FEDAnnounced that it will continue its $ 120 billion monthly asset purchase program and keep interest rates close to zero, at least until 2023. Meanwhile, the correlation between Bitcoin (BTC) and Litecoin stands at around 0.40, according to data collected from Crypto Watch.