Recently, crypto trader and influencer Nicholas Merten explained through technical analysis why he believes that Litecoin ($LTC) seems set to hugely outperform Ethereum ($ETH).
His comments came in a video (titled “Is Litecoin Set For An Explosive Breakout? | Here’s What You Need To Know”) released on April 6 on his “DataDash” YouTube channel.
Merten told the 425K subscribers of his YouTube channel that he had devoted a significant portion of his portfolio to LTC since he expects it to start a sudden rise against ETH.
He said:
“At this range here, Litecoin historically did a 5x against Ethereum… That’s massive. And these are the types of ratios you guys should be looking for because this is how you actually return multiples upon multiples of what the market is generally getting.
“This is the ultimate alpha here, if you really want to put it that way. There are not many greater opportunities than being able to find these kind of large cap plays that are already well established, that still have a chance to do crazy multiples against another play like Ethereum that’s already doing phenomenally well and leading most cryptocurrencies.“
Merten recommended traders to focus on Litecoin’s technicals versus Bitcoin and Ethereum, as opposed to its price in U.S. dollars:
“I don’t really think it’s a matter of watching the US dollar value chart. The biggest thing here we want to watch is the ratios. The ratios now are cheap. I’m not saying they’re going to go all the way up here and do a 5x against Ethereum. I think Ethereum’s got a lot of momentum now with decentralized finance (DeFi)… but I will say generally speaking whether… it’s a 100% return (2x), 200, 300, 400% return – whatever it is, this is a really favorable setup in my mind for the technicals…
“This isn’t a fundamental argument. I’m not now fundamentally bullish on Litecoin comparative to where I was fundamentally bullish on it a year or two or four or five years ago. It’s about technical price patterns. Super cycles. Patterns that take years to set up.“
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The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
