Litecoin (LTC) is currently trading at around $55 after a 5% drop in price over the last 24 hours.
Litecoin experienced exponential growth during the summer of 2019, hitting a yearly high of about $140 in August before breaking down over the second half of the year.
The altcoin reached a low of around $37 before recovering to $40, where the altcoin consolidated for a few weeks. Overall, from high to low, Litecoin lost about 68% of its value in the second half of 2019.
Interestingly, at the time of writing, LTC seems to be showing signs of recovery along with the rest of the cryptocurrency market.
Despite last night’s drop, Litecoin is still up around 38% since the start of the new year. It has already pushed over $50 and seems to be targeting $60, but is facing resistance around the 200-day EMA.
Will the positive trend continue? Let’s take a look at the LTC chart, courtesy of TradingView.
As you can see, LTC tested the 200-day EMA (the blue line) but was unable to break through this resistance level, dropping from $60 back to around $55 following the rejection.
I personally can’t foresee the price of LTC making a substantial move without first pumping above $60, and volume really needs to grow for this to happen.
Volume is currently sitting close to $3 billion – 5% higher than in December 2019.
If the altcoin recovers past its current resistance levels around the 200-day EMA, I foresee LTC quickly pumping towards the next resistance level around $70.
Although we’re on a clear bullish trend, it may take longer for a pump towards $100 to take place. It’s likely that the next significant rise in price will only happen during the BTC halving event, 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 – discussed the Litecoin Summit 2019.
The show covered the most important discussions in the community. From Litecoin acting as a store of value to new development updates.
Lee confirmed that the project was 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:
“We’re working with the Grim++ developers to add an implementation of Mimblewimble. It adds an extension block to the Litecoin main-chain. You can transact between chains to use enhanced privacy.”
The goal would be to give Litecoin users improved privacy features when transacting.