With volatility slowly but surely creeping out of the cryptocurrency market, Litecoin has continued to consolidate in a sideways pattern above the $39.54 level of support.
It has now been trading with in a 10% range for the past fortnight as it struggled to makes its way towards the psychological level of resistance at $50.
As noted on Coin Rivet’s previous analysis, the daily 200 moving average is posing a key hurdle for a number of top cryptocurrencies, including Litecoin.
It is currently coming in at $52.60, which means if it can breakout above $50 it could well be met with another stumbling block.
The bullish narrative that is circulating among long-term Litecoin investors relates to the upcoming Bitcoin halving, which is expected to commence in 19 days.
Historically when Bitcoin underwent a halving it acted as a catalyst for a series of bull markets, causing altcoins like Ethereum and Litecoin to rally significantly in the following months.
The theory is that as Bitcoin’s price will surge as new supply coming onto the market gets slashed. Investors and traders will then take profits and diversify into more speculative assets, causing the notorious ‘altcoin season’ that many have been waiting for.
However, the Bitcoin halving being a bullish event is far from certain this year as a result of the economic downturn the entire world is suffering.
The coronavirus pandemic caused the stock market to suffer its worst slide since the 2008 financial crisis, while the likes of oil momentarily traded at a negative due to oversupply.
Another decline like this would certainty have an impact on cryptocurrencies as investors attempt to liquidate assets as panic sets in.
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About Litecoin
Litecoin was released in October 2011 by Charlie Lee, a former Google employee. It is a fork of Bitcoin, with the main difference being a smaller block generation time. The protocol also increased the maximum number of coins and implemented a different script-based algorithm.
Litecoin is one of the leading cryptocurrencies and is one of the top 10 cryptocurrencies by market capitalisation.
More Litecoin news and information
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As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.