Litecoin has acted resiliently to a market-wide sell-off this week as it keeps its head afloat above the $100 level of support.
It is now the 21st largest cryptocurrency by market cap with a valuation of $7.5 billion.
Despite a notable bounce from $105, trade volume has subsided over the past 24-hours with just $723 million being traded across all exchanges.
The direction of Litecoin as it approaches the weekend will also depend on whether Bitcoin can rally back to the $38,500 mark or whether it succumbs to bearish pressure with a move below $35,000.
A break of a key support for Bitcoin will see Litecoin almost certainly begin to trade back below the $100 mark for the first time since December 2020.
Below that is rather unchartered waters. The $88 level is a historical point of support but, failing that, a swift move to as low as $64 may be on the cards as the potential of a multi-year bear market looms.
If the cryptocurrency market can rally back to the yearly open, Litecoin will be given a reprieve in the short-term as it’s expected to climb back to around $146 before fighting against a bitter level of resistance.
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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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