So I'd like to talk about a bit of a boring coins these days... as it seems all the attention is on the mid/small cap alts, and with good reason, they are offering spectacular returns. But let us come back to Earth for a minute and acknowledge these gains will not go on forever. There's definitely some good Alt coins on there that you can scalp for good prices, but I never suggest chasing the green candles and buying at all time highs.
Often times, the best time to get into an investment is when everyone's focus is elsewhere. When Ltc was hot and folks bought at 400$ feeling invincible, well they felt the pain. Now Altcoins are hot but sooner or later the same fate will happen, the cycle will reverse to focus shifting on the big coins, and folks who lose sight of this and go all in on alts will feel the pain as well.
So I always think, as a general macro strategy, the best investments are often times the one that no one is looking at. And I think it's fair to say BTC/LTC are going anywhere for at least the next 12-36 months, I think the majority of people in the community think they will rebound... So with that in Mind let's get into the Technical Analysis.
We have Fibonacci retracement levels sitting at a healthy 50% correction, with price action moving sideways, this is what many folks consider an accumulation period, a time to start buying. We will need a strong bounce off the 50% fibonacci level to start a potential bullrun, but until then I believe litecoin will continue to consolidate sideways and be in this "accumulation phase". This is good news for us, it's a buy opportunity.
The grey rectangular boxes I've drawn demonstrate previous time periods where Litecoin was consolidating sideways, in the accumlation phase, before having big run ups. The Red rectangular box on the right hand side of the photo is the consolidation phase we are in right now, and based on previous price patterns, I believe litecoin will have a large spike in price again once the market decides the accumulation phase is over.
The light blue colored portion of the fibonacci levels represents a 100% retracement from the start of the first bull run, and a 78% percent retracement from the secondary bull wave, after a small consolidation period. If litecoin dips to these levels after the accumulation phase I've been mentioning ends, this will be a HEAVY buy signal IMO. Ltc is very fundamentally sound coin, and unless cryptocurrency as a whole fails, I don't think there's a person in the cryptosphere who thinks litecoin would not rebound to higher levels if reaching what I've labeled the Heavy buy zone.
In summary - it's easy to get caught up in the small caps making thousands of percentages rois in a matter of weeks, and I absolutely believe a significant portion of your portfolio should be in those. However it's important to stay level headed and keep your portfolio balanced, having positions in coins that have the highest likelihood of being around in 3-5 years, Ltc being one of those. The Pendulum will swing the other way, this cycle always repeats itself, money pumping into the big coins, then money pumping into the small coins. And if you start accumulating litecoin now, you will reap the reward when the pendulum swings back.
Now keep in mind this is an ACCUMULATION phase, not a throw all my money in LTC right now phase. The idea is to gradually keep adding money into LTC, perhaps dollar cost average into it, over the duration of accumulation period. When this period ends litecoin will either return to it's former glory and then some (personally the most likely outcome in my opinion), or it will dip into the heavy buy zone territory. That's the "throw all my money in LTC now phase".... figuratively speaking, but it will be a good opportunity to add a significant position in your LTC.
So to summarize the summary - Imo LTC is a good buy right now gradually throw money in during this consolidation phase, dollar cost averaging probably being the best method. Once this consolidation phase is over LTC will either jump in price and you reap rewards, or it will dip in price in which case you buy a lot of lite coin, and reap even bigger rewards in the future.
Just my opinion based off what the charts are telling me, not financial advise.
-best