By Gaurav S. Iyer, IFC Published : October 23, 2017
Have you ever seen a ship turn 180 degrees? It’s an achingly slow process, but once it’s done, the ship powers on, full steam ahead. Litecoin prices (started to) execute that kind of turn last week.
LTC prices dropped on Monday and Tuesday, hung steady on Wednesday and Thursday, and then turned positive by Friday. But then the weekend came…and Litecoin prices got hammered.
It’s not the best Litecoin news, to be sure, but investors should understand that LTC is just warming up. The cryptocurrency has struggled to reach previous highs, such as the $92.00 benchmark that Litecoin crossed in early September.
It’s crucial for this turn to go smoothly. Other cryptocurrencies, such as Ripple, have suffered by falling below their crucial levels of support. For LTC, that level is $50.00. Each time it breaks below that level, there is a prolonged period of stagnation in Litecoin prices.
Investors should also keep an eye out for external shocks, such as adverse regulatory shifts or huge sell-offs. Those factors have a tendency to drive consolidation in Bitcoin.
For instance, Bitcoin’s share of total market cap is 58.4% as this article goes to press. It was 54.13% one week ago.
Meanwhile, the Litecoin to USD exchange rate dropped 2.32% in the last 24 hours, reaching $54.19 at the time of writing. The Litecoin to Bitcoin rate fell 3.85% to 0.00938635 BTC.
Daily Litecoin Chart
Trading volumes fell below $100.0 million on Sunday. In fact, they reached $96.78 million before rebounding slightly on Monday morning.
The biggest exchange was Bithumb, a Korean trading venue that accounted for 13.23% of total volume. It was followed closely by GDAX and Bitfinex, two American exchanges that facilitate LTC/USD transactions. They accounted for 12.1% and 11.08%, respectively.
Although LTC still remains well below our $200.00 Litecoin price forecast, we remain bullish on the cryptocurrency. If it recovered from China’s ban on cryptocurrency trading, then it seems far-fetched to assume that this minor slump will derail its long-term trajectory.