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.
Last week, LTC was recovering from its summer downtrend and was trading above its 200-day EMA at around $77. Since then, it has dropped a huge 29% to around $55, accompanying the overall market decline.
Has the altcoin reached its bottom? 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 last week. However, its recovery was extremely short-lived.
Due to the significant BTC dump which took place just a few days ago, the altcoin market suffered massive losses as well.
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.
Looking at the EMAs, we can see the 50-day EMA has crossed the 100-day EMA to the downside, meaning the bearish momentum will most likely continue for the time being.
Last week, I mentioned I could not foresee price pumping without a reversal on the EMAs, plus volume really needs to pump to the upside. At the moment, it is sitting close to $2.9 billion.
Finally, Litecoin seems to have found support around the $49 to $51 region, so we should expect price to hang on to these levels for a while.
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
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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