Bulls Finally Emerge on an Uptrend

Litecoin is a peer-to-peer digital currency that emerged in 2011. It has a decentralized blockchain and allows for quick and transparent transactions through independent nodes.

Litecoin shares Bitcoin’s open-source architecture, empowering miners to verify transactions and secure the network through proof-of-work. Although both LTC and BTC can be mined, an innovative Segregated Witness protocol minimizes potential “orphaned” blocks.

Litecoin outpaces Bitcoin in mining speed and total supply, employing a distinct hashing algorithm for fair distribution. Notably, its founder stepped down in 2017 to focus on community growth, divesting his holdings to address concerns about personal gain.

This P2P crypto envisions itself as a faster, more merchant-friendly alternative to Bitcoin. Its blockchain handles transactions at 4x the speed, enabling rapid settlement for businesses embracing digital payments. However, this enhanced speed comes with trade-offs, as merchants can opt for more confirmations for heightened security.

To maintain Bitcoin’s long-term supply trajectory, Litecoin undergoes halving events at a faster pace, ensuring the exhaustion of available coins by the same time. With a fixed cap of 84 Million coins, Litecoin aims for synchronous depletion alongside BTC.

Auction firm Mecum Auctions has been using Litecoin since November as a form of payment. This is evidence of Litecoin’s growing legitimacy and applicability as a medium of exchange for transactions across a range of market sectors. 

Litecoin is now seen as a transactional currency in the physical market rather than just an investment alternative. Litecoin addresses that are currently active have topped 1.4 Million, with a six-month peak of about 980,000 mid-November.

Technical Analysis & Prediction of the LTC Coin Price 

Based on the analysis of the daily price chart, it seems that the current selling activity of Litecoin has met the demand of sellers at around $83, leading to a downward momentum. In the last 24 hours, the price of LTC failed to rise above the $72 mark which is its 150-day EMA. Therefore, if the bulls can sustain here, then it is likely that a significant surge will be seen in LTC coin price

The trend line of RSI has dropped from its previous level and is now trading at 53, indicating that buyers are gradually losing control of the price chart as the RSI aims to fall below the midline. The level of SMA suggests that there might be volatility in the next few days. If the bulls fail to initiate a surge, the price of LTC may fall below the immediate support line at $65, which could lead to a correction. 

Conclusion

Over a decade since its launch, Litecoin employs a unique economic model called “halving” to gradually slow the release of new coins. This past November, a renowned auction house, Mecum, embraced the digital currency by offering Litecoin as a payment option. While LTC experienced a temporary price surge following the news, it is currently hovering around the $73 mark.

Technical Levels

• Support Levels: $65 and 55.5
• Resistance Levels: $83.8 and 102.03

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.