Litecoin (LTC) has gained more than 14 percent in 24 hours, surging from a low of $77.60 on Tuesday to a high of $93.05, before dropping slightly to $90.09 where it is currently trading.
A Wild Week for the Litecoin Price
The move saw the litecoin price outpace its peers as the crypto market struggled to recover from a punishing correction. LTC sunk as low as $76.70 during the sell-off.
It is fair to say that it has been an up-and-down week for the crypto market’s fourth-largest player. CCN reported earlier in the week that the Litecoin Foundation secured a partnership with the Miami Dolphins to accept cryptocurrency payments for the team’s 50/50 raffle using LTC and BTC. Despite this, litecoin found itself locked firmly in a downtrend mirroring that of market leader bitcoin.
Typically, when bitcoin sneezes, the entire crypto market catches pneumonia, but litecoin has bucked the trend somewhat, defying bitcoin’s dominance to break out on its own back in February. This time around, however, litecoin was sucked down with bitcoin, only finding its way back into positive territory over the past 24 hours.
More Volatility Still to Come
As a result of the halving event, which will cut the cryptocurrency’s inflation rate in half 18 days from now, the expectation is that LTC traders will yet experience some more unpredictable activity. When the halving takes place, the block rewards generated per successful hash will halve from their current rate. It is far from clear what effect this will have on the cryptocurrency itself, however.
Litecoin founder Charlie Lee believes that halving will hit miners hard, even predicting that some of them will close shop altogether. Afterward, he says, “everything will be fine.”
LTC is now trading at 200 percent of its price level at the start of the year, underlining the strength of the crypto market’s recovery from 2018’s year-long bear period.
Regardless, LTC is now worth only about 22 percent of its all-time high value of $420 which it achieved on December 12, 2017, during the historic crypto market bull run.
Litecoin market update: LTC/USD balancing at the edge of a cliff
- Litecoin price hovers above $60 after advances above $61 were unsustainable.
- The inclination to the downside is expected to continue throughout the sessions on Thursday.
Litecoin is price action is inclined towards making declines on Thursday towards the end of the Asian trading session. The cryptocurrency live rates table shows the crypto having lost 0.21% of its value on the day. LTC is hovering above $60 after corrections above $61 failed to hold. Moreover, the prevailing trend is strongly bearish albeit the shrinking volatility.
Immediate support is offered by the 100 Simple Moving Average (SMA) on the 4-hour chart. The ascending trendline is also ready to come to the rescue of the bulls. A slide below $60 could also seek refuge with $58 support. However, the major support for LTC/USD lies with $50 and $46.00 respectively.
As far as technical levels are concerned, Litecoin is expected to continue pressing down on the short term support at $60. For instance, the RSI is gradually slopping towards the oversold while, the MACD displays a bearish cross. The signals from the indicators remain bearish for the near-term which jeopardizes the tentative support areas.
LTC/USD 4-hour chart
Charlie Lee’s Joke That ‘Satoshi Donated to Grin’ Misunderstood
Grin, a privacy coin built on the MimbleWimble protocol, received a mysterious 50 BTC donation on November 12 — which, after a little investigation, proved to be coins mined back in 2010. Charlie Lee, in a conversation on Grin’s official Telegram group, claimed that “Satoshi donated to Grin.”
The assumption drawn by the creator of Litecoin was that — because the donated coins were mined towards Bitcoin’s genesis and that the previous transaction emanating out of the donator’s wallet was nine years old — it could be Bitcoin’s creator suddenly coming into the light to donate to the privacy-focused project.
This claim by Lee caused quite a stir across Twitter as Satoshi Nakamoto’s identity remains shrouded in mystery.
Satoshi Donating to Grin ‘Was Just a Joke’
However, after the rumors started flowing and people were tying this transaction to the first official signs of Nakamoto in years, Lee quelled the flames.
On Twitter, it was asked why no one was talking about Grin with a user replying that Lee had made the call that Nakamoto was donating to the project. Lee then stepped in, relaying it was just a joke.
There are a number of other explanations that can explain the emergence of early mined coins, as well as underused wallets.
Nakamoto is obviously the earliest accumulator of Bitcoin but, even nine years ago, it was possible to have been one of the early miners and accumulators of Bitcoin. In fact, the genesis block for Bitcoin was mined on January 3, 2009 — meaning that there was over a year of mining between the first Bitcoin and these coins.
The Satoshi Nakamoto Mystery Remains
It would be foolish to hedge your bets on this Grin donation being Satoshi with only circumstantial evidence. Additionally, it is more widely held that Satoshi was perhaps a group of people rather than one individual.
Craig Wright continues to maintain he is the sole creator; however, his desire to prove this has done more damage than good to his cause — with many dismissing his claim to the title of Bitcoin inventor.
Why Litecoin May Soon Post Major Gains Despite Current Bearishnes
Litecoin (LTC) has been facing an ongoing influx of selling pressure ever since its mining rewards halving that occurred this past-summer, which sparked a deep-cutting sell-off in spite of the fact that many investors and analysts had believed it to be a bullish event.
In the near-term, analysts are noting that they anticipate the cryptocurrency to see further upwards momentum, especially against LTC’s Bitcoin trading pair.
Litecoin May Be Positioned for Upwards Momentum in Coming Months
At the time of writing, Litecoin is trading down just under 2% at its current price of $60.80, which marks a notable drop from LTC’s daily highs of $63.00 that were set yesterday.
LTC’s bearish price action as of late has largely been influenced by that of Bitcoin, which has been struggling to gain any upwards momentum as it trades just a hair above its key near-term support level at $8,700.
Litecoin’s current bearishness, however, may be short-lived, as analysts are noting that the cryptocurrency may be positioned for further gains in the near-term as it recently broke above the upper boundary of a descending triangle that it had been trading in for multiple months.
The Crypto Dog, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, saying:
“I haven’t looked at the $LTC chart in months, just opened to this. Wow,” he said earlier this month while pointing to the chart seen below.
Will LTC’s Bitcoin Trading Pair Skyrocket in Coming Few Months?
The Crypto Dog is not alone in offering a bullish assessment of the cryptocurrency, as DonAlt – another well respected cryptocurrency analyst – offered a similarly bullish LTC analysis in a recent tweet, telling his 123k followers that altcoins like Litecoin are looking better positioned for near-term gains than BTC is.
$LTC: While the world is panicking looking at BTC the altcoins are looking better and better. ‘But what if BTC moves and [messes] it up?’ Well tough luck, that’s why we’ve got risk limits. There is no money in covering in fear at support,” he said while pointing to the chart seen below, which elucidates that he anticipates LTC to climb against BTC in the coming few months.
Although Bitcoin is currently showing some bearish signs, it is important to keep in mind that further BTC downside could prove to be a bullish thing for embattled altcoins like LTC.