Litecoin (LTC) price broke the $ 400 resistance, reaching an all-time high of $ 414 on the Bitstamp exchange as of Monday.
According to experts, Litecoin has become very valuable in a very short time. The world’s 10th largest cryptocurrency in terms of market capitalization has grown from $ 124.42 to $ 413.90, up more than 215 percent since the beginning of the year.
After this big rally, many independent analysts predict that the current move will continue to $ 500.
The noticeable rise in the Litecoin market coincided with the rise in leading altcoin prices. Prices of Ether (ETH), XRP, Cardano (ADA), and the cryptocurrency Dogecoin (DOGE) produced for joke have seen a total appreciation of more than 17,000 percent since the beginning of the year.
Underlining the inverse correlation between Litecoin and Dogecoin, Jason Lau, the operating director of San Francisco-based cryptocurrency services startup OKCoin, stated that the DOGE / USD parity fell 12 percent during the period when the LTC / USD parity rose 12 percent.
– Jason Lau (@jasonklau) May 10, 2021
Meanwhile, the Litecoin Dominance Index, an indicator that measures Litecoin’s strength against the rest of the cryptocurrency market, rose from 0.96 percent on Sunday to 1.11 percent on Monday. This points to an emotional shift for Litecoin markets as rallies in other alternative cryptocurrencies are showing signs of slowing down.
However, Litecoin is grappling with the risk of overvaluation that has caused the Dogecoin price to drop around 33 percent in previous sessions. This bearish analogy is outlined over a classic momentum oscillator indicator called the Relative Strength Index (RSI), which points to historically potential returns in global markets.
Is Litecoin overbought?
The relative strength index (RSI) on the chart for the LTC / USD pair is around 79.02. So it’s 9 points above the overbought threshold.
Usually in the Litecoin market, when the RSI peaks, there is a short-term reversal and the test can come towards the 20-day exponential moving average (EMA) (green line) level. In such a case, investors set the 50-day simple moving average (SMA) (blue line) as the first negative target.
Therefore, following the recent acceleration, the LTC / USD pair could see a potential retracement towards $ 252 to $ 310, depending on the current moving average values.