Litecoin reached a new all-time high of $413.09 during its rally on Monday, perhaps ending its streak of underperformance. The altcoin season has been in full effect in April and May, following in the footsteps of Bitcoin, which also reached a new historic high in April.
Other major cryptocurrencies such as Ethereum have also performed exceptionally well, especially in the last few weeks, but Litecoin price action indicates an underperformance. The altcoin has been stuck below $350, with its previous bullish attempt in mid-April being watered down back to around $220. However, the bulls regained control from around April 25, sending the price up to its new historic high on Monday.
Will LTC maintain its bullish momentum?
LTC is currently trading near its 24-hour low of $361.69, while its current 24-hour high is $394.37. Earlier today, the price touched the 7-day moving average before pulling back above the moving average, indicating that there is still some bullish momentum. The volume indicator also shows that there is less selling today than the buying pressure in yesterday’s session. Meanwhile, the Stochastic RSI has already moved below 70, which means that the price is currently not overbought.
While the technical indicators are currently supporting further momentum, a look at Bitcoin’s current performance may also create a clearer picture of what to expect. Bitcoin is still stuck in a ranging market between $52,000 and $58,000. Investors have started to shift their attention towards other potential cryptocurrencies that can offer significant upside, and Litecoin’s subdued performance this year makes it a great candidate. This might explain the additional buying, causing bullish pressure.
Litecoin’s current price, especially compared to that of Bitcoin and ETH, indicates that it is still in the underperforming zone. One Twitter user and crypto enthusiast who goes by the name KongBTC believes that LTC is still a great buy and even likened it to buying ETH in 2020.
The Mimblewimble update
Crypto analyst Alan Masters concluded with the help of Fibonacci lines that LTC could potentially soar to around $1,500 in the next few weeks and might potentially peak at $5,000 by the end of the year. Litecoin’s current bullish outlook might be turbocharged by the Mimblewimble update which has been touted as one of the Litecoin network’s most important update in history.
Litecoin founder, Charlie Lee stated that the Mimblewimble update will introduce more fungibility and privacy to Litecoin. More fungible LTC means the individual coins will not be indistinguishable, thus people who use Litecoin on gambling websites and other platforms may not find themselves inconvenienced. Coinbase previously instituted a ban on LTC holders on its service if their coins went through a gambling website or the darknet.
The Mimblewimble update has been in development since 2019 but its lead developer David Burkett recently revealed that it is close to completion. He added that it is currently going through some bug fixing, reviews and audits before it is ready. Unfortunately, Litecoin executives have not disclosed the actual date for the update release, so it is anyone’s guess right now. However, a rollout especially now that LTC has found favor with the bulls might be the catalyst that it needs to continue breaking through new price territories. The favorable analyst expectations might also encourage more buying.
Litecoin’s performance so far this week is a good indicator that there is significant bullish pressure and that there is a lot of wiggle room for it to grow. However, investors should maintain caution considering the highly volatile nature of the crypto market.
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