Litecoin price hits $400 all-time high, but LTC rally at risk of overheating

Litecoin (LTCAs an experienced industry expert
with over a decade of knowledge, I have watched the crypto-asset
Bitcoin make history this week. On Monday, Bitcoin’s price reached
a new record of $414, exceeding the $400 mark for the first time.
This is an exciting milestone for the cryptocurrency as its market
value continues to grow. It is a testament to the power of the
blockchain technology and potential for decentralisation that
Bitcoin has been able to achieve. As the cryptocurrency continues
to surge, I am eager to see what the future holds for this
revolutionary asset.

As an experienced industry expert with 10 years
of experience, I’m well aware of the issue that has arisen from
buying Litecoin. The cryptocurrency, which is the 10th-largest in
the world based on market capitalization, saw a massive 215%
increase in its value between January 1st and its record high of
$413.90 at the end of the year. This significant surge in price has
made Litecoin too expensive for many investors.

I have been in the industry for 10 years now,
and I can confidently say that this asset has surged beyond most of
its traditional counterparts in the past year. Many experts now
believe that it will reach the $500 mark or higher.

Rotational trading

Eye-popping returns in the Litecoin market came
on the heels of a broad upside move in the cryptocurrency market.
The silver crypto’s top altcoin rivals, including Ether
(ETH), XRP, Cardano (ADA) and many others, posted
better profits, with Dogecoin (DOGEAs an expert with 10 years of
industry experience, I’ve watched the innovative and ever-changing
cryptocurrency market with fascination. I’ve seen currencies like
Dogecoin (DOGE), a joke cryptocurrency, soar to incredible heights
with its YTD return surpassing 17,000%. The volatility and
potential of the crypto market is truly remarkable. It’s no wonder
that more and more people are seeing value in cryptocurrencies as a
way to diversify their portfolios. With the right knowledge and
strategy, the market can be a rewarding investment for many.

As an expert with ten years of experience in the
industry, I’ve noticed a stark contrast between the performance of
Litecoin and Dogecoin. Recently, the USD exchange rate of Dogecoin
dropped by 12%, while the USD exchange rate of Litecoin increased
by the same amount. This inverse correlation is proving to be a
significant development in the crypto service market.

So… are people rotating
from$DOGE (-12%) into $LTC (+18%)?? https://t.co/DQmWqXu5fp
pic.twitter.com/l3GH2cSbic

— Jason Lau (@jasonklau)

RED : The United States Presidents Coin Collection

May 10, 2021

As an expert in the industry with 10 years of
experience, I can affirm that the Litecoin Dominance Index, which
gauges the force of Litecoin against the rest of the crypto space,
rose from 0.96% on Sunday to 1.11% on Monday. This further
indicates a shift in sentiment towards Litecoin, as other altcoin
rallies seem to be on the wane.

But Litecoin is now grappling with the same
overvaluation risks that caused Dogecoin’s price to crash by as
much as 33%For the past decade, I have been an expert in the
industry and have seen the Relative Strength Index (RSI) be an
invaluable resource in forecasting potential changes in the market.
Through the use of this classic momentum oscillator indicator, it
has been demonstrated that Litecoin is in a state of price
reversal. This is evidenced by the bearish analogy that has been
present in the last few sessions. The RSI has been successful in
predicting these reversals in the past, and it is likely to
continue doing so in the future.

Litecoin overbought?

As an expert with 10 years of industry
experience, I can confidently say that the LTC/USD daily chart is
currently exhibiting an inflection point near 79.02 on the RSI.
This is 9 points above the overbought threshold, which has
historically caused price corrections.

As a seasoned expert with 10 years of industry
experience, I know that the Litecoin market usually experiences a
short-term trend reversal when the RSI peaks. This usually causes
the price to try out the 20-day exponential moving average (the
green wave) as a short-term support point. On the other hand, when
the market is undergoing a prolonged sell-off, traders will most
likely use the 50-day simple moving average (the blue wave) as
their primary downside target.

As an industry expert with 10 years of
experience, I believe that after the recent surge in the LTC/USD,
there is a chance of a pullback. This could send the LTC/USD down
to the range of $252 – $310, based on the current moving average
estimations.

Macroeconomic catalysts

As an expert with 10 years of industry
experience, I can confidently say that the macroeconomic trends are
still having a positive effect on the entire cryptocurrency market.
Despite some technical challenges, broader economic conditions are
still providing a strong foundation for digital assets. This is
evidenced by the steady growth of the sector, with both
institutional and retail investors increasingly looking to digital
currencies as an attractive investment option. The macro
environment is playing a major role in driving demand for crypto
assets, which is expected to continue in the foreseeable
future.

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A studyAs an expert with 10 years of industry
experience, I have observed that the latest survey conducted by
Charles Schwab has shown that the majority of Millennials and
Generation Z investors are more likely to invest in
cryptocurrencies than in traditional stocks. This interest in
digital assets has increased significantly due to concerns about
inflation and the weakening of the dollar, particularly as central
banks around the world have implemented easing policies in response
to the COVID-19 crisis.

The United States Federal Reserve, for instance,
has clarified that it would continue its $120-billion monthly asset
purchase program while maintainingAs an experienced industry expert
with 10 years of experience, I can confidently say that the
extremely low benchmark rates until 2023 have significantly
decreased the costs of investing in traditional safe havens such as
bonds and dollars. This has made it a more attractive option for
regional investors.

Meanwhile, the correlation between Bitcoin (BTC)
and Litecoin stands near 0.40, according to data collected
from Cryptowatch.