Litecoin is known for often being among the first altcoins to begin to see growth or decline after a period of sideways trading.
Following the recent crash that shocked the crypto market, Litecoin has started to move once again and may be leading the market toward a devastating crash back to prices not traded at since 2015 – long before the epic bull run that put crypto on the map first began.
Litecoin Leads the Path Toward Return to 2015 Prices
Litecoin often leads the way. Which way that is, depends on the current market structure, sentiment, and a number of other factors.
In early 2019, Litecoin led the market toward a recovery, fueled by the asset’s halving. In 2020, once again, Litecoin was among the first altcoins to rebound from lows and go on to set new local highs.
Related Reading | Crisis Impact: Most Assets Returned to 2016 Prices While Bitcoin Holds Strong
However, after those highs were tapped, Litecoin and the rest of the cryptocurrency market experienced a bloodbath alongside the stock market, precious metals, and more, as investors cashed out liquid assets into cash to prepare to weather a coming economic storm.
Litecoin may now be leading the path for the rest of the crypto market toward prices that haven’t been trading at since prior to the 2017 cryptocurrency bull run and hype bubble.
Prior to the crypto bubble, Litecoin traded at prices under $10. The level could be the final target of the coming Litecoin drop, according to one crypto analyst.
$LTC leads the crypto market they say.. pic.twitter.com/mvTJ1WrVOF
— The EW Guy (@TheEWGuy) April 1, 2020
Elliott Wave Theory Points to Deeper Correction Before Incredible Upside
According to one crypto analyst’s take on Elliott Wave Theory and how it applies to LTC/USD price charts, the cryptocurrency is currently mid-way through wave B in an ABC corrective pattern.
The target for wave B puts Litecoin back under $10, or prices that the asset traded at back in 2015.
Litecoin often leads the way for the crypto market, which suggests that Bitcoin and the rest of the altcoin market will be headed back to 2015 prices.
After the target is reached, however, cryptocurrencies will begin the C wave of the ABC correction, taking the price of Litecoin to over $3,000 per LTC token.
Related Reading | $50 Is Final Target For Ethereum Correction According To Elliott Wave Theory
Elliott Wave Theory is based on investors’ emotional impulses that often drive the price action in speculative assets. Few investor classes are as emotional or impulsive as crypto investors, making the practice especially accurate in predicting future price movements.
Most other financial assets have fallen back to prices from years ago. Will Elliott Wave Theory holds true and will Litecoin and the rest of the crypto market take a trip down memory lane and return to prices from 2015?
Featured image from Shutterstock