Litecoin (LTC) has been one of the hardest hit in the last 6 months of the crypto bear run. It has dropped from a high of over $300, to its current price of under $80. However, according to Charles Lee, the founder of Litecoin, the market is about to rebound. His argument is that tether has printed $250 million of USDT, and that’s a precursor to a coming bull run.
So, how is Litecoin likely to perform in coming weeks? Has it bottomed out, or is there a chance that it will be headed lower?
Well, to determine this, one needs to look at Litecoin’s long-term charts. In the weekly charts, Litecoin broke below a key long-term support level along the 55-day moving average, some 4 weeks ago, and has been dropping ever since. With bitcoin, the main market determinant still bearish, Litecoin looks set to test the next support level at $55 along the 100-day moving average. If it breaks below this level, the next support level to the downside is at $20 – $23. If Litecoin were to hit these price levels, it will have matched Charles Lee’s prediction during the Litecoin peak that it could easily drop to $20.
However, from a fundamentals perspective, Litecoin (LTC) is unlikely to go that low. That’s because there is so much going on around Litecoin at the moment, and the market in general, that a reversal is very much imminent. For instance, a few days ago, a U.K based trading platform launched a futures market for Litecoin. This is guaranteed to drive up volumes into Litecoin over time, and push up the value of Litecoin. The launch of the bitcoin futures in December saw bitcoin (BTC) peak at $20,000 and it isn’t inconceivable that a rise of LTC futures could push Litecoin to new heights.
On top of that, Litecoin is still one of the strongest cryptos in the market. It has some of the lowest transaction fees, and is among the fastest cryptos in the market. That’s why the #paywithlitecoin campaign has been quite successful. At the moment, the number of corporations making use of Litecoin is quite high, and serious lobbying is underway to have Amazon adopt LTC as a payment method. If that happens, Litecoin could easily rise way higher than its all-time highs. It would very easily be on its way to over $1000.
As such, chances of Litecoin (LTC) dropping further to lows of under $50 are highly unlikely. The charts may be indicating that, but the fundamentals tell a different story. If the market continues to drop, Litecoin is likely to test $60. At that point, investors are likely to get in on the basis of fundamentals and drive the price back up to above $100. One thing is clear though, once the market rebounds, Litecoin will be one of the cryptos that will lead the recovery. People who get in at today’s sub $100 are guaranteed to reap big!