Litecoin (LTC) experienced exponential growth earlier this year. Prior to mid-June, the altcoin was the best performing digital asset of 2019, growing more than 170% in fewer than 90 days and peaking at around $145.
However, a serious summer downtrend saw LTC tumble to around $49. At the time of writing, Litecoin is showing signs of recovery and is now trading at around $58 – 16% higher than last week. Price has remained relatively flat over the last 24 hours.
Last week, Litecoin was in a clear downtrend, and it seemed unlikely that it would recover any time soon.
However, that downtrend seems to have reversed since the pump on Friday following Bitcoin’s 40% rise.
Will Litecoin consolidate above $60? Let’s take a look at the LTC chart.
As you can see from the chart above, Litecoin suffered a huge fall around mid-September due to a significant BTC dump which impacted the entire market.
LTC attempted to consolidate and recover over the following weeks before another downtrend in mid-October saw price fall from $60 to below $52 in under a week.
However, the entire crypto market experienced a huge pump last Friday – loosely attributed to Chinese President Xi Jinping’s positive comments about blockchain – and since then Litecoin’s price has been consolidating near its 20-day EMA.
Looking at the EMAs, we can see the 50-day EMA has crossed the 200-day EMA to the downside and the 20-day EMA is still on a downtrend. However, price is now attempting to break these levels to reverse the trend.
Last month, I mentioned I could not foresee the price of LTC growing without a reversal of the EMAs. In addition, volume really needs to pump to the upside, which finally seems to be happening. At the moment, volume is sitting close to $3.1 billion, marking a whopping 24% gain since last week.
Finally, looking at the volume profile, Litecoin seems to have found support around the $57 region and will likely face some resistance around $72-$75, and then again near $90.
I’ve shifted my position over the long term and I now believe it may take longer for a pump towards $100 to take place. It’s much more likely that the next significant pump will only happen after the BTC halving, which is taking place sometime in May 2020.
Recently, the “Magical Crypto Friends” show – which is available on YouTube and features Litecoin founder Charlie Lee – focused an entire program on Litecoin.
From Litecoin acting as a store of value to new development updates, the show covered the most important discussions in the community.
Lee confirmed that the project is working on privacy improvements as well. The Litecoin development team is working with the Mimblewimble protocol, specifically the developers behind Grim, with a view to potentially adding the privacy protocol as an extension block.
According to Lee, it would work as follows:
“All the miners are mining both the extension block and the main chain at the same time, after the soft-fork that is. So the Mimblewimble chain would go alongside the main chain and then you would have peg-in, peg-out, so you could move Litecoin into the other chain and back.”
The goal would be to give Litecoin users improved privacy features when transacting