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.
A serious summer downtrend then saw LTC tumble to around $49 before a market-wide pump last month following Chinese President Xi Jinping’s bullish comments on blockchain.
Litecoin is currently trading at around $58 after a 2% drop in price over the last 24 hours. Price is now down 5% since last week.
Will the altcoin continue consolidating above $55? Let’s take a look at the LTC chart.
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.
LTC was attempting to break through its EMAs last week to reverse the trend, but instead price has fallen back below the 200-day EMA again this week.
This shows clear signs of weakness, even though LTC is still trading above a key support level around $55-$57 (according to the volume profile on the left).
Last week, 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 does finally seem to be happening. At the moment, volume is sitting close to $4 billion, marking a whopping 23% gain since last month.
Finally, looking at the volume profile, Litecoin 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.
Watch the new Magical Crypto Friends Episode 24: Romantic Relationships! In this Litecoin episode: LTC Halving, Development, FUD and is it a SoV? + Roger Ver’s crazy claims!
Note: this episode was recorded pre-ERC20 drama. (next episode will have less LTC)https://t.co/NlfNk9WRrg
— Magical Crypto Friends (@magicalcrypto) August 28, 2019
Recently, the “Magical Crypto Friends” show – which is available on YouTube and features Litecoin founder Charlie Lee – focused an entire program on Litecoin.
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 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.
Litecoin was released in October 2011 by Charlie Lee, a former Google employee. It was a fork of Bitcoin with the main difference being a smaller block generation time. It also increased maximum number of coins, and a different script-based algorithm.
Litecoin is one of the leading cryptocurrencies and is one of the top 10 cryptocurrencies by market capitalisation.
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