Litecoin (LTC) experienced exponential growth earlier this year. Prior to mid-June, Litecoin was the best performing coin in 2019, growing more than 170% in less than 90 days and peaking at around $145.
However, after a couple of substantial falls toward the end of June and into August, LTC has now dropped close to yearly lows.
Unfortunately, Litecoin has suffered yet more downward momentum, dropping from close to $100 at the start of the month to a low of $60 earlier this week.
LTC is currently trading at just above $63 after falling 14% from $73 over the past week.
Let’s take a look at the chart.
Litecoin has dropped below all its EMAs and price currently seems to be in free fall. Due to the volatility in the Bitcoin market, I argue it’s going to be hard for Litecoin to overcome its losses over the next month or so.
In terms of news, Litecoin’s third halving took place a few weeks ago. 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.
However, the reality is that the halving may have been a ‘buy the rumour, sell the news’ type of event, with seasoned traders taking profits weeks before the event took place.
Looking at the EMAs, we can see the 50-day EMA is crossing the 100-day EMA to the downside, meaning more bad news is on the cards.
Price-wise, I expect LTC to consolidate a bit further before pumping over the $100 mark again towards the end of Q3 2019. If this doesn’t happen, we could see LTC dropping even further, even though it’s already near yearly lows.
Will the altcoin market recover from its current free fall?
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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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.