Litecoin Tries To Steal Bitcoin Thunder, But A Pullback Could Be On The Way

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Litecoin could be heading for a cliff as the divergence between the price and the RSI manifests. LTC metrics still point to strong demand, but some whales are taking profits.

Litecoin [LTC] took advantage of its bull run in the press to forge a favorable image. Some might say he was trying to steal some of the Bitcoins [BTC] shine. In a January 21 tweet, LTC listed five traits that made her attractive and set her apart from her contemporaries.

5 Things You Didn’t Know About Litecoin1) Litecoin Was The Fairest Coin Launch Ever2) The Founder Is Still Involved3) Litecoin Now Has Over 141 Million Transactions4) You Can Use Litecoin Almost Anywhere5 ) Litecoin is 4 times faster than Bitcoinhttps://t .co/0Ke3pgpBEd

— Litecoin (@litecoin) January 20, 2023

Reading Litecoins [LTC] Price Prediction 2023-24

One important trait that Litecoin highlighted was that it was four times faster than BTC. While such a statement may appear to be an attempt to make LTC more attractive relative to Bitcoin, it does not necessarily undermine competition.

On the contrary, the two cryptocurrencies have co-existed in the same market and one does not pose a threat to the other. Litecoin has had an impressive rally so far, but is it really a better option for this bull run?

Litecoin can stand on its own

A look at Litecoin’s price action revealed that, at the time of writing, it was up around 51% from its 12-month low in June 2022. In contrast, Bitcoin is up 47% from its November 2022 lows. The former traded in an ascending price pattern. An extended rise should at least put it above $100 at the next rising resistance level.

Source: Trading View

As of press time, the price has some room before it hits the rising resistance line. Another observation suggested that the selling pressure might start to weigh on the price. Its new nine-month high, reached in the past 24 hours, pushed above the previous high reached on January 14.

Meanwhile, the RSI and MFI experienced some slippage, indicating weakness in the trend. This observation revealed a price-RSI divergence, which was often a sign of an upcoming bearish move. The LTC supply distribution showed that some of the largest and most dominant whales were already selling out at the time of writing.

Source: Santiment

Realistic or not, here is the market capitalization of LTC in terms of BTC

Addresses holding between 100,000 and one million coins currently control the largest percentage of LTC supply. The same address category has been contributing selling pressure for three days.

Despite this, the number of whale transactions is still low, which confirms that there is low selling pressure at the moment. The average coin age metric also remained on an upward trajectory, suggesting that investors are still holding onto their LTC coins.

The last time Litecoin had a price against the RSI divergence, there was a retracement in the following days. This could happen again in the next few days. However, investors should consider that market momentum remained in favor of the bulls at press time, despite overbought conditions.

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