Litecoin (LTC) price has tripled in value since the year started, breaking above the $400 psychological level earlier today. The altcoin soared to an all-time high of $412 on May 10, posting more gains than ETH and BTC. According to Coinmarketcap, LTC has risen by nearly 42% in the last 24 hours.
The coin has been in an ascent since September 2020, outperforming the traditional markets. However, it appears the asset has been showing signs of exhaustion lately. Nevertheless, some still believe the rally could push it to $500.
A tweet from Jason Lau, Chief Operating Officer at OKCoin shows that people are now “rotating” from Dogecoin to LTC. He noticed some sort of correlation between the two cryptocurrencies. Lau noted that Doge dropped by 12% while LTC posted an 18% gain within the same timeframe.
The rotation notion was further bolstered by the Litecoin Dominance Index, which measures the strength of LTC compared to other cryptocurrencies. The index reveals a jump from 0.96% on Sunday to above 1% on Monday.
The rotation comes after many went bearish on Dogecoin following the 25% drop during SNL, contrary to the expected rally. Dogecoin price dropped further on Sunday to a low of $0.5701. This could be one of many factors responsible for the move to Litecoin.
Is Litecoin Price Overbought?
However, Litecoin price could be entering overvalued zones. Analysts had earlier warned of an overbought signal for Litecoin as revealed in its price action and other indicators.
According to a report, the Relative Strength Indicator, RSI, for the LTC/USD daily chart shows an inflection point close to 79.02. Based on previous reactions, the price always correct at that level.
This suggests that price could retrace anytime soon, sending the price southward. A report noted that the correction could send the price to as deep as $250. However, Litecoin is currently trading around $383 according to Coinmarketcap.