Litecoin (LTC) has seen exponential growth since the beginning of March, with a small bump in the road during April which quickly dissipated going into May. Prior to mid-June, Litecoin was the best performing coin in 2019, growing more than 170% in less than 90 days.
However, after a couple of substantial falls toward the end of June and into early July, LTC is currently trading at just above $118, and the market now seems to be moving sideways.
Will Litecoin turn things around and continue its move upwards? Or will price drop closer to the $99-$102 support area?
My personal belief is traders should be careful at the moment, as sideways markets are useful for accumulation but also risky.
Let’s take a look at the chart for Litecoin.
The price of LTC dropped almost 15% from $136 to $112 at the start of July before recovering to around $124 last week. Price has corrected due to the LTC market being overbought and over-bullish. As most traders and investors have warned, including myself, when there’s increasing pressure upwards, a serious correction between 20 to 30% should be expected (and welcomed). We’ve seen similar behaviour with Bitcoin over the past week, as the coin is consolidating above its 21-day EMA.
Last month, Litecoin went from $104 to close to $144 in the space of a few days, marking a 40% increase in price, so some form of retracement was expected at some point.
Let’s also not forget a quite important point. LTC was one of the first altcoins to become bullish by the book: the 20-day EMA is above the 50-day EMA, which is above the 100-day EMA.
Moreover, taking a look at the volume profile, we see there’s loads of action around key levels such as $115-$120 – near where LTC is currently sitting – and then around the $91-$95 region.
In terms of recent news, Litecoin’s third halving is coming in just a few weeks. Those that are overly bullish on Litecoin have to look no further than the previous halving to justify their positions. What usually happens is a massive bull run in the months that follow halving events.
My guess is that Litecoin should continue following Bitcoin’s path (as it’s the most important BTC testnet). Price-wise, I would expect it to consolidate a bit further before pumping over the $120-130 levels.
Litecoin was released in October 2011 by Charlie Lee, a former Google employee. It was a fork of Bitcoin with the main difference being a smaller block generation time, increased maximum number of coins, and 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
If you want to find out more information about Litecoin or cryptocurrencies in general, then use the search box at the top of this page. Here’s an article to get you started:
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.