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Ethereum (ETH) ripping through $4,000 this month has been a big enough story on its own, but what has recently attracted attention is how closely Litecoin’s chart is shadowing it. As analyst Ali Martinez laid them side by side, one can see what the fuss is about — repeated runs into a hard resistance, sellers swatting each one down, and then a final push that actually sticks.
For ETH, that wall was about $4,050. Once it gave way, the move to $4,700 happened fast. For "digital silver," as LTC is perceived, the equivalent level is $140, and it has been a brick wall since late last year.
So, it looks like: clear that, and the chart opens up toward $220 with very little in between.
Right now, Litecoin's sitting around $129. It is not exactly a breakout, but the LTC price came a long way from July's sub-$90 lows. The rejections at $140 over the past year knocked it down hard each time, but now the dips are shallower, and buyers are back, quicker. In some opinions, that is the kind of shift that often happens just before a level finally breaks.
Litecoin goes biotech — What?
Then there is the curveball from outside the chart. MEI, the biotech company, announced this week that they have added Litecoin to their portfolio as part of a $100 million institutional treasury plan.
Even more surprising, they have Charlie Lee, the man behind LTC and GSR, a major trading firm, giving them advice. It is not every day you see that kind of mix on a corporate balance sheet, and it is the sort of thing that could get other desks paying attention.
If Ethereum keeps climbing to $5,200, there is a good chance it will trigger a full-fledged altseason, and some of that energy will definitely spill into LTC. At the $140 level, things either die or turn into a fast run, and the setup is basically a carbon copy of ETH's pre-breakout look.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team