Litecoin Price Prediction: LTC Close to Crucial Support $47!
LTC Technical Analysis
Litecoin is measured by market capitalization, and it is the third-largest cryptocurrency after XRP and Bitcoin. Litecoin works as an online payment system like PayPal and Paytm. But, instead of U.S dollars, the transactions happen in the units of Litecoin. There are many advantages of Litecoin over Bitcoin, such as Litecoin can handle more transactions and offer shorter block generation time than Bitcoin. It also has a low transaction cost.
After the launch of Litecoin, it quickly got the attention of the growing community. However, the value of the altcoin remained rather low to around $3 for quite a long time. It was in November 2013 when the market saw its first price movements, and it reached $50 per coin. The price of Litecoin decreased to as low as $62.65 last year; however, since then, the prices of Litecoin is fluctuating. It has lost 30% of its value and has hit as low as $25, which is its lowest value since December 2018. LTC/USD shows some upcoming reversal signals for the long term investment. LTC remains outside of the Bollinger Bands, which indicates that the prices are going to return to average soon. The initial bullish target is $34.16, which on the lower side of the Bollinger Band.
LTC/USD Live
LTC/USD Positive vs. Negative Factors
Litecoin is a cryptocurrency that evolved after the popularity of Bitcoin to allow the investors to diversify their investment in digital currency package. The most significant feature of Litecoin is that it takes 2.5 minutes to generate a block for Litecoin in comparison to 10 minutes for Bitcoin. Litecoin can also handle a higher number of transactions due to the fast transactions. Also, the fast block time of Litecoin decreases the risk of double-spending attacks.
Litecoin was created by Charlie Lee in 2011, and it is supposed to serve as a peer-to-peer, borderless, frictionless electronic cash. Any factor that allows the Litecoin to function the way it is supposed to work has the potential to improve its price.
Positive factors for the price hike
- Wide Acceptance –Wide acceptance causes Litecoin price to hike up. As Litecoin is accepted as a medium of exchange, its demand will rise, and so will be its price.
- Low transaction fees –LTC offers low transaction fees, which makes it an efficient mode of exchange. Litecoin is popular for a while for its low fees, even for the largest transactions.
- A decrease in the annual growth of LTC –As there is an anticipated decrease in the growth of LTC, the value of existing LTC is going to go up. The way with which the rate of supply decreases for cryptocurrencies is called the Halving event. Halving event, therefore, reduces the rate at which the new Litecoin is added. It’s worth keeping the note of halving event as it has a significant impact on the supply of the coin.
Negative factors for the price hike
- Profit-taking –The major cause of the decline of Litecoin is the profit-taking behavior of the traders. Litecoin started from $30 in 2019, and it reached $150 in June, rising to more than 375%. However, now when the market is sluggish, traders are taking their profit out.
- Challenges –Litecoin is struggling with a lot of difficulties. As the coin failed to get some fresh capital flow, the transaction volumes have declined. The miners are abandoning their work due to the reduction in their reward. There are also concerns being raised about the network’s security.
- Less interest –The interest around the Litecoin has reduced lately. There is a strong correlation between tweet volumes and a market cap of Litecoin. LTC is experiencing the most significant drop in the interest as compared to other altcoins.
