The Wall Street cheat sheet is mainly used in analyzing investor sentiment in the stock markets. However, it is increasingly gaining favor in the crypto community. One of the stages of this psychological analysis sheet is the disbelief phase. This phase is characterized by a price rally after markets have taken a huge beating over a sustained period. It is called a disbelief phase because, after witnessing many false rallies, and prices having tanked so much, most investors don’t believe that the market could be in a real recovery. So why is Litecoin (LTC) in the disbelief phase of the Wall Street cheat sheet?
Well, for starters, Litecoin’s rally comes after several market-wide rallies that have all failed. For instance, Bitcoin has rallied to over $4000 several times, and in all these cases, the rallies have failed, pulling down the entire market with it. As such, Litecoin’s latest rally could easily be taken as another false rally that could be followed by a dump. However, from a look at Litecoin’s price action, there is a high chance that it could sustain this rally.
For starters, Litecoin is now up by over 100% from its December lows, breaking key resistance levels and holding above them. If this was some random small coin that is listed on a few exchanges, and with low volumes, this would easily be interpreted as another pump and dump move. Litecoin is none of that. This is a major cryptocurrency that is available on all major crypto exchanges in the world. In fact, it is listed on almost every exchange where Bitcoin (BTC) is listed. This means that doing a pump and dump on Litecoin is not that easy. In essence, the fact that it has jumped this much means there is some real demand supporting it, and the rally could turn into a full-blown Litecoin (LTC) bull run.
There are several factors that support the possibility of a sustained Litecoin Bull Run. One of them is that, Litecoin’s fundamentals do inspire confidence in anyone looking to invest in crypto. When some random altcoin pumps and gets projected into the limelight, part of the reason why it dumps is that, the fundamentals simply don’t inspire the confidence of investors. Litecoin is different. It is different in the sense that it has been around for long, which means it’s tested, and proven its ability to survive bear markets. On top of that, it has real-world adoption. At the moment, more than 400 major corporations accept Litecoin (LTC) as a form of payment. Some of them include companies like Shopify, a major global e-commerce platform. This is confidence inspiring and could see its value surge significantly, as demand grows.
If this rally holds, Litecoin (LTC) could enter the hope stage in coming months, which could turn into full-blown optimism and another Bull Run, similar to that of 2017. The upcoming Litecoin Halving in August could be the trigger that pushes it into the hope and optimism stages of the Wall Street cheat sheet.