Litecoin Analysis: Today we’re going to talk about one of the oldest coins in the market. Although Litecoin doesn’t have the privacy features or efficiency of other cryptocurrencies, it has outlasted several many younger altcoins. Is Litecoin making a light come back?
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Litecoin & Founder Lee’s Shenanigans
The 7th largest crypto by market cap, Litecoin, is just another version of Bitcoin. But it’s faster and has cheaper transactions. Litecoin developers have also borrowed many of Bitcoin’s newer innovations. Those include Segwit and the Lightning Network, to make it even faster. According to founder Charlie Lee, Litecoin is seeking to become the silver to Bitcoin’s gold. Speaking of Charlie Lee, the Litecoin founder found himself in some hot water last year, when he publicly announced that he had sold the entirety of his lite coin holdings. At the time, many crypto bulls mocked the decision, which seemed to indicate that Lee had no faith in his own project. Lee also raised another scandal, with a bearish prediction to a market full of bulls.
On December 11th of last year, Lee tweeted a Litecoin analysis and prediction of “a multi-year bear market,” saying “if you can’t handle LTC dropping to $20, don’t buy!” That seemed pretty unlikely, with Litecoin at the time valued over $230. With prices now approaching $23 many supporters believe that Lee’s prediction has been vindicated.
Over the past weekend, Litecoin successfully flipped Bitcoin SV and Bitcoin Cash, demonstrating that newer isn’t necessarily better. After reaching lows of May 2017 last week, Litecoin attempted to erase the weekly losses on Sunday with a 15% surge.
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Litecoin Analysis on the Charts
Taking it a look at its price action on the 4-hour chart, you’d notice that Sunday’s gains brought the LTC/USD pair back inside the Ichimoku cloud, with the future cloud turning slightly bullish. We saw a similar pattern back in November, and it didn’t turn out to be a bullish reversal. It did, however, give short-term traders a chance to trade the volatility.
With that, crypto traders with high risk-tolerance can consider keeping an eye on a break above the 4-hour Ichimoku cloud for a chance of selling their Litecoin at the near-term resistance level of $29. Reaching the higher, 50% Fibonacci retracement resistance level of $35 would require a stronger bullish momentum.
With that, now I’d like to turn to you and hear what you think the future will hold for Litecoin. Do you think now that LTC has reached the $20 level that its founder predicted, chances are higher for it to bottom out soon? Would you rather invest in Litecoin for longer-term purposes, or trade the volatility for higher risk profits? Let me know in the comments, and subscribe to get more updates. Remember that as the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio.
Don’t forget to complete your risk management due-diligence before developing your investment strategy.