Litecoin (LTC) is currently trading at around $45 after a 10% jump in price since last week.
However, despite the overall positive trend, LTC price has fallen almost 5% during the past 24 hours.
Litecoin experienced exponential growth during the summer of 2019. LTC hit a yearly high of about $140 and then came crashing down until the very last days of December.
Litecoin reached a low of around $37 before recovering to $45, where it sits now. Overall, from high to low, Litecoin lost about 68% of its value in the second half of 2019.
However, at the time of writing, LTC seems to be in better shape after a much-needed pump earlier this week.
Will the altcoin recover and push above $50 during January 2020?
Let’s take a look at the LTC chart, courtesy of TradingView.
Unfortunately, after finally moving back above the 20-day EMA, price now seems to be climbing back down. However, at the time of writing, LTC is still clinging on to its 20-day EMA.
This is a clear sign of strength, even though LTC is trading below a key resistance level around $55-$57 (according to the volume profile on the left).
Last week, I mentioned I could not foresee the price of LTC making a substantial move without first pumping above $50. In addition, volume really needs to see some growth.
Volume is now sitting close to $3.3 billion, 20% higher than last week – a good start.
Finally, if the altcoin recovers, Litecoin will likely face some resistance between its EMAs. In terms of price action, that translates into resistance from around $50 until $65.
I’ve shifted my position over the long term and I now believe it may take longer for a pump towards $100 to take place. It’s much more likely that the next significant pump will only happen after the BTC halving, which is taking place sometime in May 2020.
Watch the new #MagicalCryptoFriends Episode 30: Magical Mothers. In this episode we talk about mining in China being “legalized,” a special announcement, the Litecoin Summit, & Litecoin MimbleWimble extension blocks. Thanks @BTSEcom for sponsoring this ep! https://t.co/6sRxc1ly0H
— Magical Crypto Friends (@magicalcrypto) December 1, 2019
Recently, the “Magical Crypto Friends” show – which is available on YouTube and features Litecoin founder Charlie Lee – discussed the recent Litecoin Summit 2019.
The show covered the most important discussions in the community. From Litecoin acting as a store of value to new development updates.
Lee confirmed that the project was 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:
“We’re working with the Grim++ developers to add an implementation of Mimblewimble. It adds an extension block to the Litecoin main-chain. You can transact between chains to use enhanced privacy.”
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 is a fork of Bitcoin, with the main difference being a smaller block generation time. The protocol also increased the maximum number of coins and implemented 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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