Litecoin on the way to $100 and More! | And More in This Week’s Crypto Update
- Litecoin on the way to $100 and More!
- APE About To Rebound
- XDC’s Strong Uptrend May be Paused
- Crypto Trading 101: Trading Ethereum With the RSI
Litecoin on the way to $100 and More!
Litecoin bounces off support and is on the way to testing its $100 resistance level. Let’s learn more about Litecoin, how it compares to BTC, and where it is heading next.
The details: Litecoin (LTC) is a well-known cryptocurrency that has been around since 2011. As one of the oldest altcoins in the market, it has a longer history of data that investors and traders can use to analyze price trends and make informed decisions.
Litecoin’s Relationship with Bitcoin
One interesting trend that has emerged from studying Litecoin’s historical data is that it tends to reach its high and low points before Bitcoin. For example, in the previous bull run, Litecoin reached its all-time high in May 2021, while Bitcoin reached its all-time high in November 2021. This trend continued in 2022, when Litecoin reached its lowest point in June, while Bitcoin’s lowest point occurred in November.
This trend suggests that Litecoin can be a useful indicator for predicting Bitcoin’s future price movements. However, since we are currently not close to Bitcoin’s next all-time high, we won’t focus on that today.
What Happens Next?
Currently, Litecoin is recovering from a correction that brought its price down to the $65 support level. The cryptocurrency is now on track to re-test the $100 resistance level, and if it breaks above that, it may move towards the $240 resistance level.
However, it is unlikely that Litecoin will reach $240 any time soon unless Bitcoin experiences a major bull run this year. Based on the four-year cycle that Bitcoin and the overall crypto market tend to follow, Litecoin may reach $240 sometime in 2024 or 2025.
In case of a correction, Litecoin has the $65 and $40 support levels ready to jump in. Additionally, the 200 SMA acts as a mobile support level.
APE About To Rebound
ApeCoin (APE) has been heading lower lately, losing about 40% of its value in the past 2 months. However, its fortunes are about to change as it is approaching its most import support level!
What is APE? ApeCoin is a governance and utility token used within the APE Ecosystem. ApeCoin holders govern themselves through a decentralized governance framework and vote on the use of the ApeCoin DAO Ecosystem Fund, which is administered by the APE Foundation. The goal is to incentivize and empower a decentralized community building on web3.
Recent Price Action
In January 2023, APE managed to break out of a descending channel that it had been caught in previously. This was a positive development, indicating that the market sentiment towards the token had turned bullish. The token’s price continued to rise steadily, reaching a high of $6.50.
However, after reaching $6.50, APE’s price started to decline, and it is currently heading toward its main support level of $3.30-$2.70. Given the current market and where we stand on the 4-year cycle, this level is very likely to hold. This means that after some consolidation, the price will start heading toward the $6.50.
Looking Ahead: APE’s price has been trending significantly lower lately. However, this is good news for us, as it is currently close to its support level and the lowest point the coin has reached. This means that APE has a lot of potential for future growth.
XDC’s Strong Uptrend May be Paused
XDC has been in a strong uptrend lately; however, it may take a break before going up further.
What is XDC? The XDC Network is an optimized, EVM-compatible blockchain platform that uses a delegated proof-of-stake consensus mechanism for fast transaction times and low gas fees. Validators must stake XDC and upload KYC documentation to participate in block generation. The platform also plans to incorporate a novel judiciary branch to enhance the security of its consensus mechanism.
Current Situation: XDC Network (XDC) has been on a roll lately, posting impressive gains over the past few months. In just 18 days, it has risen by 50%, and since the rally started in December 2022, it has surged by over 100%. However, the crypto asset is currently approaching its next resistance level of $0.045.
What Now?
If XDC breaks above $0.045, it will continue to head toward its next resistance level of $0.070. However, this will likely only happen if the overall market and Bitcoin become bullish.
One reliable indicator for predicting the end of XDC’s rally is the Relative Strength Index (RSI). Currently, the RSI is overbought and has been for some time. This suggests that a correction may be on the horizon before XDC pushes higher.
Based on the RSI and the current market, the most likely outcome is that we will see a short-term correction before XDC continues its upward trajectory.
Bottom Line: XDC Network has been an exciting player in the crypto market, posting impressive gains in recent months. While it is currently approaching its next resistance level of $0.045, if it breaks above this level, it could continue to rise toward $0.070. However, investors should keep an eye on the RSI, as it has effectively predicted the end of XDC’s rallies. A correction may be expected in the short term before XDC resumes its upward trend.
Crypto Trading 101: Trading Ethereum With the RSI
Let’s see how we can make a profit trading Ethereum with the Relative Strength Index (RSI)!
You can now download the strategy for free!
What is Ethereum? Ethereum is a popular decentralized, open-source blockchain platform that enables smart contracts and decentralized applications to be built and run without any downtime, fraud, or interference from a third party. Ethereum’s native cryptocurrency, Ether (ETH), is the second-largest cryptocurrency by market capitalization after Bitcoin.
Trading with the RSI
The Relative Strength Index (RSI) is a technical analysis indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in an asset. The RSI oscillates between 0 and 100 and is typically plotted alongside a price chart to identify potential trend reversals.
The classic way for trading with the RSI is to buy when the RSI falls below the oversold level (usually 30) and sell when the RSI rises above the overbought level (usually 70). This strategy assumes that oversold conditions may indicate a buying opportunity, while overbought conditions may indicate a selling opportunity.
Best trading RSI strategy for Ethereum
At Cryptohopper, we strive to bring you the best settings for each indicator, including the RSI, to help you make informed trading decisions. In our backtest from 2017–09–26 to 2023–03–30, we found that the following settings for the RSI worked best for trading Ethereum:
Chart period 30 minutes
RSI Period 2
Oversold 14
Overbought 74
These settings brought returns of 2706%, significantly higher than the buy-and-hold strategy’s 552% returns. Additionally, the maximum drawdown for this strategy is smaller at 56% compared to the buy-and-hold strategy’s 95% drawdown.
Disclaimer: Past performance does not guarantee future success, as the way the market fluctuates can change at any time.
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