The cryptocurrency market performed exceptionally well last year. Bitcoin, Ethereum, and Litecoin (LTC) along with other digital assets recorded all-time highs between December 2017 and January 2018. However, a crash ensued where virtually all the digital assets slashed the gains tremendously. Some cryptos trimmed the gains by over 90% in the first quarter of 2018. Many people, cryptocurrency enthusiasts alike, did not believe that there will be a comeback. On the contrary, the recent analysis show that we should brace ourselves for another Bull Run similar to the one that took place at the end of 2017.
The entire market has been growing steadily in the recent months. At the moment the total market capitalization stands at $330 billion despite the selloff that has been prevailing in the past three weeks. The market is, however, a long way before it recovers from the slump that took place early this year. Individual investors, large corporations, and several banking institutions have been pouring millions into the market. Though, the market, in general, is indicating positive sentiments and potential for growth, what about Litecoin (LTC/USD)?
Litecoin (LTC) was not left behind during last year’s Bull Run. The crypto spiked by 329% in a period of 11 days. It was incredible, although, the question that still lingers in the mind of the investors… will there be another surge like the one in December last year? Well, I believe Litecoin is getting ready for a comeback in a big way.
Smashing out of the Descending Trendlines
The aftermath of the 329% surge last year was a crash that saw Litecoin tumble massively. Litecoin price dropped from highs of $369 to traded lows of $108 in under two months. However, it was not over for this cryptocurrency. Litecoin price has broken out of a multi-month descending trendline. The biggest upside move was seen on 14th February 2018, where LTC/USD short up 37% breaching through the descending trendline and embarked on an upward journey where it traded slightly above $200.
In retrospect, the short Bull Run did not last for long. Litecoin started to correct lower wiping smiles from the investors’ faces. It was simply an ugly move from February 20 to April 11. LTC/USD was locked below another descending trendline, however, from April 12, the bulls said no more to the bear pressure. They battled to regain control and pushed the price up testing the key resistance zone at $160 before correcting lower again due to the current bear wave in the market. Applying Fibonacci retracements on the charts, an upside target of $560 is well within reach in the coming months. This will coincide with the Bull Run that is anticipated in the market before the end of the year, even sooner.
Tom Lee, the founder of Frudstrat and a top analyst predicted that Bitcoin will hit $25,000 by the end of the year. He has come back to stress that he is still confident that his prediction will come through. He, however, said that for Bitcoin to hit $25,000, it does not have to be increasing every day. I believe the same applies to Litecoin (LTC) and the rest of the cryptocurrencies.