Recently, crypto trader and influencer Nicholas Merten explained through technical analysis why he believes Litecoin ($ LTC) will significantly outperform Ethereum ($ ETH).
Merten told The 425,000 subscribers to his YouTube channel, to whom he had devoted a significant portion of his portfolio for LTC, as he expected it to trigger a sudden surge against ETH.
“In this area Litecoin has played against Ethereum 5 times in the past … That’s huge. And these are the types of ratios to look for because that is how you are actually giving back multiples of multiples of what the market in general is getting.
“This is the ultimate alpha here if that’s really how you want to put it. There aren’t much bigger options than finding these type of large-cap games that are already well established and that still have the chance to play insane multiples against another game like Ethereum that is already doing phenomenally well and the leads most cryptocurrencies.“
Merten advised traders to focus on Litecoin specs versus Bitcoin and Ethereum, as opposed to the US dollar price:
“I don’t think it’s about looking at the US dollar value chart. The biggest thing we want to see here is the proportions. The conditions are cheap now. I’m not saying they will go all the way here and do a 5x against Ethereum. I think Ethereum has a lot of momentum now with Decentralized Funding (DeFi) … but I’ll generally say if … it’s a 100% (2x), 200, 300, 400% return – whatever it is, this is one really cheap setup in my head for the technical …
“This is not a basic argument. I’m not basically optimistic about Litecoin now compared to what I was basically optimistic about a year, two, four or five years ago. It’s about technical price patterns. Great cycles. It takes years to set up patterns.“