Litecoin (LTC) had a rough six months, rising at $386 in May before plummeting by 70% to $107 in July, then recovering to the $231 level in September and currently sustaining around $200. It’s nothing short of a thrill ride. Litecoin transactions, on the other hand are nearing an all-time high after their popularity in consumer financing.
Over the last six months, Litecoin like other payment focused cryptos such as Stellar Lumens (XLM) and Ripple (XRP), has underperformed several competing cryptocurrencies. Legacy projects have been eaten dry by Decentralised Finance (DeFi) initiatives and meme-coins. As a result, the Litecoin price is now around less than half of what it was in May $386.
Due to all of the connections and collaborations that Litecoin has achieved, analysts anticipate that it will have a bright future in 2021.The Litecoin Foundation owns 9.9% of the WEG bank in Germany. With all of the new and impending innovations, the Litecoin community is also highly active. It is apparent that Litecoin has a lot of promise and will continue to flourish as a strong rival to all other crypto currencies, which was the case until May of this year. Litecoin’s price projections imply that it has promise, but will it be able to sustain a steady rising trend?
Is there a significant resistance level for Litecoin at around $230?
While Litecoin price movement has been optimistic in recent days, it continues to underperform in its longer-term performance when compared to Bitcoin or Ethereum. Some of the underperformance may be attributed to the nearby swing high of $231. The 2021 Volume Profile thins out significantly after $230, implying that Litecoin bulls will have an easier time driving the price higher. Because Litecoin has trailed behind not only Bitcoin and Ethereum, but also the bigger altcoin market, it may experience some surprising increases in the near future.
Market drivers appear to be optimistic in terms of the growing quantity of cryptocurrency transactions and the requirement to handle transactions with faster block generation times. To be cautious, traders should hold off on placing positions in the market until LTC closes above or below important levels.
Following the launch of Bitcoin in 2009, a slew of other cryptocurrencies emerged including Namecoin, Ixcoin, Tenebrix, and Solidcoin. However, the majority of them disappeared into thin air in no time. Litecoin, on the other hand, is one of the few cryptocurrencies that has survived. Their prices have often moved in perfect sync since their beginning. Litecoin is commonly thought of as the silver to Bitcoin’s gold, underlined John Iadeluca, founder and CEO of multi-strategy firm Banz Capital, on the link between these two cryptocurrencies “The market usually reacts very similarly to Litecoin relative to Bitcoin in terms of price movement.”
Litecoin, up until now has seldom deviated from Bitcoin’s course. Nonetheless, given the non-sync of the coins’ on-chain measures, it’s fair to say that LTC has been attempting to isolate itself from BTC in recent months.
#PaywithLitecoin: Verifone works with more than 600,000 merchants. The company manages more than 10.4 billion online and in-store transactions annually, totaling more than $440 billion. #Litecoin $LTC https://t.co/PZ6NKEStd9
— Litecoin (@litecoin) October 25, 2021
Litecoin appears to have broken out of its slump and is fighting its way above the long-term moving averages. Furthermore, Litecoin’s low relative value may appeal to bargain hunters if the cryptocurrency market continues to rise.
Litecoin was created in 2011 with the stated purpose of being “the silver to Bitcoin’s gold.” According to cryptwerk figures, 3,115 businesses now accept LTC directly as payment, up from 2,230 in the same period last year. Clothing and accessories, electronics and computers, food and beverages, home appliances, pharmaceuticals, gift cards, and so on are among the 3,115 businesses. The Litecoin card will allow users to spend LTC at any digital business that accepts Visa as a payment method, which the Litecoin Foundation expects to be over 50 million.
Click here to learn more about the background of Litecoin from Fyggex (Link1 and Link2)
Image: Gerd Altmann
*Disclaimer: Fyggex, does not give any guidance, advice or recommendations to neither invest or not in any available NFTs or cryptocurrency directly or indirectly via any trading platform, exchange or provider. Our sole purpose is to make you aware of the related real or potential risks and opportunities so that you can make your own research prior to any financial decisions you may want to take. Past performance and position are not a guarantee of risk-free future returns.