Litecoin (LTC) experienced exponential growth earlier this year. Prior to mid-June, the altcoin was the best performing coin of 2019, growing more than 170% in fewer than 90 days and peaking at around $145.
However, a serious summer downtrend saw it tumble to around $49, where LTC is currently sitting.
Last week, Litecoin seemed to be recovering – briefly touching $56 – but over the past 48 hours LTC has lost more than 12%, tanking with the rest of the market.
Will Litecoin consolidate above $50?
As you can see from the chart above, Litecoin started to recover on September 29 – a trend that only stopped around mid-October, when the price tanked from $60 to below $52 in under a week.
Due to the significant BTC dump which took place during late September, the altcoin market also suffered huge losses.
The reality is that the Litecoin halving, which took place a few months back, may have been a ‘buy the rumour, sell the news’ type of event. Seasoned traders took profits weeks before it took place, much like history shows.
Looking at the EMAs, we can see the 50-day EMA has crossed the 200-day EMA to the downside as well as the 20-day EMA is still on a downtrend.
Last month, I mentioned I could not foresee the price growing without a reversal of the EMAs. In addition, volume really needs to pump to the upside, which doesn’t seem to be happening. At the moment, volume is sitting close to $2,5 billion, marking a whopping 20% loss since last week.
Thinner volumes tend to result in more volatility, so do expect some price changes while volume continues to grow.
Finally, looking at the volume profile, Litecoin seems to have found support around the $49 region and will likely face some resistance around $56-$60, and then again near $64.
I’ve shifted my position over the long-term and now I believe it may take longer for the pump towards $100 to take place. Much more likely, only after the BTC halving, taking place sometime in May 2020.
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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