Litecoin, fondly called the ‘Digital Silver’ to Bitcoin’s ‘Digital Gold’ in supporter circles, has quietly slipped under the radar over the last few years. The last time that this altcoin made headlines was back in 2023, which was a halving year. Since then, it has trended below the $100 level as the crypto market has struggled to hold up gains. Now, once again, the altcoin may be gearing up for another major move as it is close to completing a rare Golden Cross formation.
Litecoin Golden Cross Formation Is On The Horizon
Golden Cross formations for Litecoin have been rare despite having been in the market for over a decade. There have only been two Golden Cross formations in the history of the cryptocurrency, meaning that this occurrence of this formation carries significant implications for the price. The Golden Cross formation happens when the 50-Week and the 200-Week moving averages cross each other, beckoning the return of the bulls.
Crypto analyst and CMT-certified expert Tony “The Bull” Severino pointed out the importance of this formation. He highlighted that another Golden Cross is about to form for Litecoin and used the performance of the previous formations to show what could happen ahead of this cross.
The first time that this Golden Cross appeared was back in 2017, and the crypto analyst revealed that the Litecoin price had seen a 700% increase ahead of the cross. Then again, in 2021, there was another Golden Cross of the 50-Week and 200-Week moving averages, which saw a 450% rally.
However, something worthy of note is the fact that the Litecoin price rallies have always happened before the Golden Cross formation was complete. Given this trend, it is possible that Litecoin is on the cusp of another major price rally before the formation is complete.
There also seems to have been some diminishing returns in how much the Litecoin price has rallied in response. Therefore, it is possible that the current rally may not be as high as the previous ones, but could still see an over 200% increase regardless. Besides, the analyst points out that a sizable rally would trigger the Golden Cross.
Currently, the Litecoin price is still trading at around $87 at the time of writing. So, a 200% rally would put the altcoin’s price above the $200 mark. If it does follow the return patterns of the previous appearances of the Golden Cross, then a 450% rally would put it above $300, and a 700% rally would set it on a path to $500.
Featured image from Dall.E, chart from TradingView.com
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