Litecoin (LTC) experienced exponential growth earlier this year. Prior to mid-June, Litecoin was the best performing coin in 2019, growing more than 170% in less than 90 days and peaking at around $145.
However, after a couple of substantial falls toward the end of June and into September, LTC has now dropped close to yearly lows.
Litecoin dropped to a low of $62 at the beginning of September and fell again to around $63 last week. However, after some consolidation and recovery, LTC is currently trading at just above $68.
Let’s take a look at the chart.
Litecoin has dropped below all its EMAs and price currently seems to be in limbo. Due to the volatility in the Bitcoin market, I argue it’s going to be hard for Litecoin to overcome its losses over the next month or so. Things might not start improving for Litecoin until the end of the year if the market gets too gloomy for altcoins.
The recent price action will certainly be disappointing to avid followers of the project, especially those who were tipping Litecoin to eclipse new all-time highs following the ‘halving’ event.
The reality is that the halving may have been a ‘buy the rumour, sell the news’ type of event, with seasoned traders taking profits weeks before the event took place. Price has since corrected to around the same levels it was prior to the LTC halving event.
Looking at the EMAs, we can see the 50-day EMA is crossing the 100-day EMA to the downside, meaning more bad news is on the cards.
Price-wise, we could see LTC dropping even further in the short term, even though it’s already near yearly lows. However, I still expect LTC to consolidate before pumping over the $100 mark again towards the end of the year.
Litecoin was released in October 2011 by Charlie Lee, a former Google employee. It was a fork of Bitcoin with the main difference being a smaller block generation time, increased maximum number of coins, and a different script-based algorithm.
Litecoin is one of the leading cryptocurrencies and is one of the top 10 cryptocurrencies by market capitalisation.