Litecoin (LTC) experienced exponential growth earlier this year. Prior to mid-June, the altcoin was the best performing coin in 2019, growing more than 170% in less than 90 days and peaking at around $145.
After a couple of substantial falls toward the end of June and August, Litecoin dropped to a low of $63 at the start of September.
However, LTC finally seems to be recovering. The crypto coin managed to touch $80 yesterday, and despite an overnight dip, it is currently trading at $73, around 16% higher than the start of the month.
Let’s take a look at the chart.
As you can see from the chart above, Litecoin finally managed to break back above its 200-day EMA yesterday after spending the last month attempting to consolidate and recover following its significant summer falls.
However, the altcoin pump that occurred at the start of the week appears to be over, and LTC dropped back below its 200-day EMA – which currently sits at $77 – last night.
The recent price action will certainly be disappointing to avid followers of the project, especially those who were tipping “Bitcoin’s silver” to eclipse new all-time highs following the ‘halving’ event.
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. Price has since corrected to around the same levels it was prior to the LTC halving event.
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. I cannot foresee a recovery without price pumping above all the EMAs, which could happen if the momentum from earlier this week returns.
Regardless, I still expect LTC to consolidate before pumping over the $100 mark again towards the end of the year.
Watch the new Magical Crypto Friends Episode 24: Romantic Relationships! In this Litecoin episode: LTC Halving, Development, FUD and is it a SoV? + Roger Ver's crazy claims!
Note: this episode was recorded pre-ERC20 drama. (next episode will have less LTC)https://t.co/NlfNk9WRrg
— Magical Crypto Friends (@magicalcrypto) August 28, 2019
Just recently, the “Magical Crypto Friends” show – which is available on YouTube and features Litecoin founder Charlie Lee – focused an entire program on Litecoin.
From Litecoin acting as a store of value to development updates, the show covered the most important discussions in the community.
Lee confirmed that the project is working on privacy improvements as well. The Litecoin development team is working with the Mimblewimble protocol, specifically the developers behind Grim, with a view to potentially adding the privacy protocol as an extension block.
According to Lee, it would work as follows:
“All the miners are mining both the extension block and the main chain at the same time, after the soft-fork that is. So the Mimblewimble chain would go alongside the main chain and then you would have peg-in, peg-out, so you could move Litecoin into the other chain and back.”
The goal would be to give Litecoin users improved privacy features when transacting.
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.
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