Litecoin has gained over 400% since the December 2018 bottom. Is price overbought? Will there be a bearish correction soon?
May 28, 2019 | AtoZ Markets – Litecoin is among the top gainers since the cryptocurrency market bottomed in December 2018. From $22 low, Litecoin has surged by 440% in less than 6 months. In May alone, the cryptocurrency which was forked from Bitcoin, added over 75% to its value after it was supported at $70. Currently trading at $114, Litecoin has outperformed Bitcoin since they both bottomed. However, considering the overall recovery, Litecoin has recovered about 30% of the 2018 bearish trend while Bitcoin at nearly 35% has done better in this regard.
EOS overtakes Litecoin
Despite the big upsurge, Litecoin has dropped its position as the 5th ranked cryptocurrency on Coinmarketcap. EOS has now reclaimed the spot with $7.15 billion in market capitalization compared to Litecoin’s $7.08 billion. In the last 24 hours, EOS, unmatched by any other cryptos in the top 100, has surged by 12.5% and forced its way back to the top 5. The cryptocurrency has now gained 450% since the December 2018 bottom – slightly higher than LTC’s 440%.
Meanwhile, Litecoin’s current spike has seen it easily break above the $108-110 resistance zone. The price zone twice supported price between early February and late March 2018 before the eventual breakout in early June. $180, $250 and $305 are the next resistance levels the bulls will have to overcome before reaching the all-time high at $375.
Litecoin price prediction: is LTC overbought?
It seems Litecoin is about to complete a bullish impulse wave from $22. A 3-wave bearish correction will most likely follow. When the 4th wave was supported at $70, we expected a 5th wave push toward $120 as the chart below, used in the last update, shows.
LTC price has now advanced further to $115 (61.8% Fibonacci projection of wave (i)-to-(iii) from wave (iv) as the new chart below shows.
The 5th wave seems not to be over yet and might extend above the current level. We will look forward to an impulse wave or an ending diagonal pattern completing the bullish impulse wave from $22. Further rallies to $120-140 are very much possible. However, a much bigger bearish correction than any seen in the current recovery might just be at the corner. The correction could hit $70 again but the underlying trend remains bullish.