Ethereum (ETH) has broken above key resistance. This could be an indicator that the major bear market is over. A dip to $117 could be a good buying opportunity (Figure 1).
Litecoin (LTC) is getting close to support at $27.75 (Figure 2). If the area around $29 can hold as support, the chart is set up for Litecoin (LTC) to join any potential rally in Bitcoin (BTC) and Ethereum (ETH).
While the charts for Ethereum (ETH) and Litecoin (LTC) are interesting, there may be a better reason to consider these coins. Looking at coinmarketcap.com’s ranking of top coins by market cap, the rankings for Ethereum (ETH) and Litecoin (LTC) hint there’s room for these coins to move up the rankings.
First, Ethereum (ETH) is now back within shouting distance of Ripple (XRP). Shouldn’t Ethereum (ETH) be above Ripple (XRP) on the market cap chart? The SEC has stated that Ethereum (ETH) is not a security. The same cannot be said for Ripple (XRP).
Second, Litecoin is behind Bitcoin Cash (BTC), EOS, and Tether (USDT) in terms of market cap ranking. While we admit it is not an apples-to-apples comparison, Litecoin has a use case. You buy coffee and low priced goods with it. The use case behind Bitcoin Cash (BCH) and EOS is nebulous at best.
Bottom Line: Looking into 2019, it is going to make sense to start trading coins based on where their market cap is relative to other coins. Ethereum (ETH) and Litecoin (LTC) have market caps that seem to be too low relative to other big coins. This could set up Ethereum (ETH) and Litecoin (LTC) as long candidates assuming support points hold. Join me in the Crypto.IQ trading room as we hone in on any potential trade entry points.