Litecoin (LTC) experienced exponential growth earlier this year starting at 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 $92 after losing around 20% in value in just a week. Litecoin was at a low of $78 yesterday before receiving a 16% boost back above $90.
Will Litecoin turn things around and continue its move upwards? Or will price drop closer to the $75-$77 support area?
My personal belief is that 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.
Last week, I mentioned I was expecting price to bounce near LTC’s 50-day EMA. Instead, the market decided to tank quite substantially, and Litecoin crashed below all of its EMAs before recovering to trade between the 200 and 100-day EMAs.
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 currently consolidating above its 20-day EMA.
Litecoin began this month trading above $134 and is now below $95, meaning LTC has lost close to 40% of its total value in July.
In terms of recent news, Litecoin’s third halving is almost here. 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 again (which I believe will happen).
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
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