In a bid to find the most undervalued legacy coin, the Silver Standard report made the case for Litecoin. It pointed out that the Proof of Work Litecoin network has a fourteen-year uptime, a rising hash rate, and deep liquidity.
Comparing the Litecoin [LTC] hash rate growth as a percentage to Bitcoin’s [BTC] hash rate growth highlighted LTC’s resilience at the technical level. This meant that the chain has significant adoption potential, and possibly sizeable price upside.
The multi-year compression pattern on the monthly chart supports this view. These compressions often resolve with a violent move, as price action coiled tightly like a spring tends to explode outward with force.
If a rally emerges from this setup, the price could aim for the all-time high at $410.
Litecoin is at key support, but no reaction from bulls
On the weekly chart, Litecoin was trading at a key support zone at $82. It was a demand zone that had initiated the rally in June, which saw a bullish weekly structure break.
Moreover, it marked the Value Area Low for 2025.
This finding came from the Fixed Range Volume Profile tool. The A/D indicator continued to trend higher, suggesting that it was possible to overcome the recent selling pressure.
On the other hand, the MACD signaled strong bearish momentum.
The daily chart confirmed a bearish structure.
Swing traders need the $88 supply zone to flip into support before considering long positions. The $82 area remains a support, but it has not attracted enough buyers to shift momentum.
The bearish case
As things stand, the bullish and bearish cases seem more or less equally likely. The lack of bullish reaction for nearly a month at the $80 area was a warning that the price is accepted at these levels. Bulls who might see Litecoin as trading at a discount were few in number. Otherwise, we would have seen a rally by now.
Traders’ call to action- more waiting?
A move past $88 is needed to signal a growing uptrend. A breakdown below $75-$80 is required to signal a bearish continuation. Right now, it might be prudent to wait for the market to show its hand.
Final Thoughts
- Litecoin is trading at 2025’s Value Area Low, a key long-term support.
- The consolidation within the $80 demand zone indicated a lack of strength from the buyers over the past month, and could pave the way for more losses.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
