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.
However, a serious summer downtrend saw the altcoin drop to around $63 by the start of September.
A couple of weeks ago, LTC seemed to be recovering and was trading close to its 200-day EMA at around $73. Since then though, it has dropped a whopping 32% to around $50, accompanying the overall market decline.
Earlier this week, Litecoin recovered to around $55, where price is currently sitting. Over the past 24 hours, LTC hasn’t moved much in either direction.
Has the altcoin reached its bottom? Let’s take a look at the chart.
As you can see from the chart above, Litecoin started to recover on September 29 after the market meltdown and has since been on a positive trend – albeit still far below its 20-day EMA.
Due to the significant BTC dump which took place last month, 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 also crossed the 100-day EMA to the downside, meaning the bearish momentum will most likely continue for the time being while LTC consolidates.
Last week, I mentioned I could not foresee price growing without a reversal of the EMAs, plus volume really needs to pump to the upside. At the moment, it is sitting close to $1.9 billion, marking a whopping 52% drop since last month.
Thinner volumes tend to result in less volatility, so do not expect many price changes while volume remains below the $2 billion mark.
Finally, Litecoin seems to have found support around the $52 region and will likely face some resistance around $63-$64, looking at the volume profile.
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
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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