The halving of Litecoin is just under a month away and with that, the fourth-biggest cryptocurrency is starting to slow down and we can see the cracks starting to show. After seeing a high for the year at $146 at the end of June, Litecoin has seen some significant losses with more than a 40 percent drop in under a month.
But according to one analyst, the worst isn’t over yet. Benjamin Blunts has shared his forecast on Litecoin’s future price action with his prediction coming in the form of a sandwich where two pieces of good news enfold the bad news.
Cutting Litecoin in Half
In less than twenty days, Litecoin will split into two. This is one of the most anticipated events for the whole crypto space in 2019, this is thanks to its bullish nature. On August 20th, block rewards for miners will be decreased from 25 to 12.5 coins. The cutback of coins that are currently circulating reduces the rate of inflation of the crypto token from 8.7 percent per year to 4.2 percent.
As reported by CCN:
“Many people expect that this event will likely supercharge Litecoin’s value. However, trader Benjamin Blunts thinks the exact opposite.
On July 15th, the analyst took to Twitter to share a chart and illustrate how the cryptocurrency has more downside potential. In the first of two tweets, the trader mentioned how Litecoin is “in an interesting place” because one can clearly see a complete five waves up. This is an indication that the market is no longer in a downtrend and that the bottom is in from a macro perspective.”
The analyst went on to say in a later tweet that “some more time is needed before we start a new impulsive leg to smash all-time highs.”
With this in mind, Litecoin should drop around the time of the halving.
At the end of the day, despite Litecoin showing signs of bearish movement, the upcoming halving will be leveraged to dump on unwitting retail traders. At the same time, there is another way of looking at the future of Litecoin in that it might experience a second coming of sorts and could see a new all-time high.
But given that the altcoins all seem to follow in the footsteps of Bitcoin, the future of LTC could all rest on the shoulders of the leading cryptocurrencies.
Litecoin Founder Charlie Lee Invests in Startup Casa to Make Bitcoin ‘Easy to Use’
Litecoin founder Charlie Lee has revealed on Twitter that he is a supporter and investor in cryptocurrency custody startup Casa.
Charlie Lee is a fan of cryptocurrency custody startup Casa. The founder of Litecoin congratulated Casa on Twitter for hiring a new product lead, after which Lee revealed that he has invested in the startup.
Casa, the cryptocurrency custody startup that aims to maximize safety and security for its crypto users, are supported by Litecoin founder Charlie Lee.
Today, Charlie Lee tweeted about the startup, congratulating the company for hiring a product lead. Furthermore, Lee shared his confidence in the startup. The Litecoin founder compares Casa with the times when he joined Coinbase back in 2013.
The cryptocurrency startup has raised over $3.5 million over the past year. The goal of Casa is to offer a “key manager app in every pocket and a node in every home.”. The Keymaster mobile app is available for iOS and Android.
Last year the company released its first premium product dubbed “Keymaster,” a multi-signature service for bitcoin investors. Soon after, Casa announced its plug-and-play Bitcoin Lightning node, the “Casa Node,” to much fanfare, selling out its initial batch in two hours. Casa has shipped over a thousand Casa Nodes since it was released.
Litecoin to break out of the broadening wedge; on course for correction if support holds
Digital silver has not had the best couple of weeks. With anticipation about its block halving raising its price by over 300 percent in 2019, the event itself saw bearish price movement.
Litecoin, after reaching a high of over $140 in price two months prior to the halving, has seen a slump since. At press time, the cryptocurrency has been trudging below $75, losing over 45 percent of its price in less than 45 days. While other competing coins are relatively performing better than LTC, the fifth largest crypto will fall out of the top-5 if it does not break-out of this slump.
Source: Trading View
The weekly chart for LTC/USD looks to form a broadening wedge pattern which has shown inklings since December 2018. Formed by the peaks witnessed in December, April and in June, the peak of the same coincided with the $144 price of the coin.
On the other hand, the lows initially were part of small green candlesticks owing to the slow start of 2019, and of late, the price has been in a downward turn, leading to several red candlesticks. Four consecutive red candlesticks were seen as the price dropped by over 34 percent in June and July 2019 alone. The two weeks of August saw the price drop by $19 or roughly 21 percent, during the halving itself.
The slump looks to continue, with the support of $74.1 being tested during press time. If the same fails, the next support level stands at $67.66, which the coin bottomed out of during the close of April. Furthermore, the next support level stands at $60.15, which was part of Bitcoin’s massive April 2 price upheaval.
Source: Trading View
An important indicator for this to hold is the momentum. The Awesome Oscillator indicates that the short-term momentum has been surging over the long term momentum since March 2019, however, after reaching its price peak two months prior, the concluding bars are red, pointing a bearish market.
The MACD, on the other hand, shows that the Signal line overtook the MACD line, indicating bearish momentum for the coin. The Bollinger Bands, which point to a financial asset’s volatility indicate that the price is fluctuating significantly over the past few weeks. Additionally, the trend line indicates a turnover from the bulls to the bears after 5 August.
Litecoin Presents a Great Investment Opportunity As It Tests a New 3-Month Low
The performance of Litecoin (LTC) over the past weeks has been very poor. The price of Litecoin (LTC) has been on a downward trend a couple of weeks before the Litecoin halving event took place on August 5. On the day of the event, LTC USD price tested a high of $100. However, it has lost more than 25 percent of that value at the press time. Over the past 14 days, the price of Litecoin (LTC) has plunged by more than 22 percent.
The recent decline in the price of Bitcoin (BTC) dragged the altcoin market along. Many altcoins plunged heavily and tested new yearly lows. Litecoin (LTC) also lost a considerable fraction of its value and plunged to the low of $70. Litecoin lost its position to Bitcoin Cash some weeks ago. Since then, the digital currency has not been able to reclaim its position. It is now at the fifth position on the list of top digital currencies by market cap.
Litecoin Price Analysis – Litecoin Tests 3-Month Low – Litecoin Price Prediction 2019 – Cryptocurrency Market Update
The past few days have been pretty hot for Litecoin (LTC) and other digital currencies. The price of Litecoin was on a continuous downtrend for more than two days. The price of Litecoin (LTC) broke below the $84 support level and continued heading south. The $77 support was not able to prevent further losses and LTC USD Price plunged further to the $70 area. The digital currency has slightly recovered over that level and it is now trading around the $74 range.
The digital currency is currently facing hurdle on the upside at the $75 and $77 resistance levels. Over that level, the next resistance is at the $80 and $84 levels, which contains the 200-day exponential moving average. On the other side, the immediate support of the digital currency is at the $71 mark. If the price of Litecoin plunge below that level, it is likely to find support around the $67 mark. The next support levels after that are the $65, $63, and $60 levels. However, it is unlikely for Litecoin (LTC) to plunge towards that level. The digital currency seems settled at the moment, but it needs enough bullish traction to surge higher and return to its previous trading position.
Litecoin (LTC) Price Today – LTC / USD
Now Is the Best Time to Invest In Litecoin (LTC) – Best Cryptocurrency to Invest in 2019 – Cryptocurrency Market Update
The search for the best cryptocurrency to invest in 2019 is an unending one for many digital asset investors. While others complain during trading periods like this, some digital asset investors usually see it as a great opportunity. The low prices of digital currencies allow investors to acquire more coins and increase in their holdings.
The price of Litecoin (LTC) is down to around the $74 mark, and it is unlikely to plunge further below the $70 mark. This means this is a great time to acquire more LTC coins or to invest in the coin if you have not done so before. The price of the digital currency is more likely to bounce back in the short-term, and many digital asset investors would be smiling to the bank when this happens.