Litecoin has seen the formation of a bullish Morning Star candlestick on its monthly charts. The candlestick would prove extremely bullish and could take LTC above $270. For this rally to happen, Litecoin needs a breakout above $137. We believe the ETF news and Litecoin’s proximity with Bitcoin and Ripple blockchain could provide this support to cross $137.
Morning Start Candlestick on Monthly Charts
On the monthly chart below we can see that Litecoin has formed a clear
Litecoin Could Breakout with a 100% Rally Above $137
Over the last few days, Litecoin has shown strong resistance to falling down. Now the price has crossed a resistance of $123. Another move beyond $137, i.e., 10% on the upside could trigger a massive growth in LTC where it has the open possibility to reach $270 in the short term.
Further, Litecoin’s RSI is also showing decent strength. At press time, the RSI is at the level of 60, which is bullish enough to take it another 10%. However, since the broader markets are on the neutral to bearish side (Fear and Greed Index at 48) we could see action around late Feb 2025.
Fundamental Factors Supporting Litecoin
The fundamental factors supporting Litecoin are its upcoming ETF and its proximity to Bitcoin and XRP’s blockchain in terms of design, security, and operation.
Litecoin’s Architecture
Litecoin has an architecture that is very close to Bitcoin in terms of blockchain design. It features a proof-of-work blockchain that does not have smart contracts. While this may seem like a drawback it also protects the blockchain from unnecessary threats which in turn enhances security.
Further, Litecoin has a pooled node sharing with Dogecoin which allows both blockchains to benefit from each other’s nodes. Any problem concerning consensus can be resolved by experts from both sides which adds redundancy, keeping the uptime at 10%.
Litecoin was designed as a faster version of Bitcoin with just the block time reduced to
Litecoin ETFs
A couple of days ago, we saw Coinshares file for the second Litecoin ETF after Canary Capital’s S-1 application with the SEC. No other Litecoin ETFs exist outside the USA at present.
The reason why Litecoin ETFs could be more successful than other altcoin ETFs is that it has a very high potential for cross-border payments, day-to-day crypto transactions, business payments, liquidity bridging, and a lot of other stuff that is important for businesses.
Some of these products are already live in the market like LTC Pay, which is a P2P payment service based on the Litecoin Blockchain.
What is a Morning Star Candle?
A morning star candle is a bullish candle with a very short body and a very long tail pointing downwards. Usually, this candle forms when there is a bearish trend in the markets and the prices break down below a crucial support zone. As buying intensifies after a breakdown due to a lucrative price, the price recovers and the body of the candle shortens.
This candle signals that a price recovery is around the corner and usually the next highest resistance is taken as the price target.
