- Litecoin has recovered from the recent lows, moving in sync with the market.
- The double-top formation may result in a sharp sell-off.
Litecoin (LTC) is changing hands at $46.30. The 7th largest digital asset with the current market value of $3 billion has retreated from the recent high of $47.69, though it is still 2.5% higher from this time on Tuesday.
BTC/LTC correlation
A popular crypto twitter analyst Willy Woo (@woonomic) noted that Bitcoin price often tracks Litecoin performance. He pointed out, that if the correlation is true, Bitcoin may extend the upside in the nearest future, following Litecoin’s path.
Notably, LTC/USD has recovered over 20% of its value in recent week, also, it is 12% higher from the beginning of the day. For the sake of comparison: Bitcoin’s price increased by 15% on a weekly basis; since the start of 2020, the first digital coin managed to gain only 2.3%.
However, the correlation seems to be arbitrary in the long run as Bitcoin and Litecoin tend to move in sync, though the leading coin cannot be clearly identified. According to Intotheblock data, the price correlation between Litecoin and Bitcoin is currently 0.96.
LTC/USD: Technical picture
LTC/USD has created a double top formation on 1-hour chart. A sustainable move below the the neckline at $44.50 will worsen the short-term technical picture and sent the price towards the next support created by 1-hour SMA at $43.00 and to the critical $40.00. A move below $40.00 will negate the bullish scenario and bring LTC inside the consolidation range that dominated at the end of March.
However, a rejection from $44.50 will create a condition for the next bullish wave that will bring the price towards $47.00 (double top) and April 7 high at $47.69. Once it is out of the way, the upside is likely to gain traction with the next focus on $50.00
LTC/USD 1-hour chart
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