Critical Analysis of Litecoin
Litecoin, which is one of the most appreciated cryptocurrency, came into being because of a crypto activity called ‘fork’. The fork which helped Litecoin to emerge was that of Bitcoin which took place soon after two years of Bitcoin’s creation. Litecoin (LTC) was and is a product which came into being because of the existence of Bitcoin.
In terms of speed and accuracy of transactions, Litecoin is in fact way more improved network than that of Bitcoin itself. At presently, LTC is one of the fastest growing digital currencies alongside cryptocurrencies like Dogecoin, Solana and SHIB Inu.
Gradually Declining Prices
At present moment Litecoin price exceeds US$ 105.06. Since 2011, the economy of Litecoin has successfully been able to cap its market capital at above US$ 7.36 Billion. If one look at LTC’s daily trade volume then it is quite clear that its trading volume is going over the average of US$ 70 Million per day. The maximum supply of LTC is however capped at a total of 84 million coins which has already reached more than 70 million. This means that only 14 million more Litecoins are remaining to enter into the supply market. While 70 million Litecoins are already part of the market and are in supply.
Litecoin is struggling to keep up the pace which it was having in the past year. For instance, in May 2021, Litecoin saw its highest single coin value which went as high as US$ 388.30. This record high single LTC coin value was recorded exactly on 9th May, 2021 and it has been almost a year that LTC has failed to even go closer to that value.
Bullish Expectancy
The highest value of Litecoin after 9th May, 2021 was US$ 279.36 which was witnessed in the 14th November, 2021. Since 14th November, however, the value of Litecoin has been gradually declining and there were hardly any bullish.
Crypto Pundits’ Prediction of Major Upward Shift In May
According to several crypto analysts, particularly Litecoin analysts, a major upward shift is expected with regard to Litecoin. They are expecting the value of Litecoin to go even beyond its 9th May, 2021 value of US$ 388.30. According to the analysts’ estimate, the price is going to be somewhere between US$ 380 to US$ 450+. They believe that value surge is likely to take place in the month of May 2022. This is exactly the same month when Litecoin market was bullish in the past year.
Furthermore, crypto analysts believe that LTC is currently moving onto the same path as that of Bitcoin. They further believe that the movement of the two coins is much the same and both are expecting their support level soon. For instance, analysts expect that Litecoin’s support level is due in May, 2022 and support price would be in between US$ 98 to 102. Similarly, the support level for Bitcoin price is also expected to take place in May, 2022.
Technical Perspective of Litecoin
As regards Technical perspective of Litecoin, it shows that the current state of LTC’s technical aspect is strong towards selling. This means that at presently investors are resorting to selling their Litecoins instead of opting for buying new ones. However, the good thing is that the selling pressure is normal and does not reflect ‘strong sell’ indication.
Can Reduced Coin Supply Pressure Bring ‘Rebounding’?
Another group of investors are expecting positive results soon after Litecoin completed its supply of 70 million in the market. They are expecting that since only 14 million coins are left for minting therefore the supply pressure has been reduced significantly. As a result of this reduced pressure, it is very much possible that rebounding for Litecoin might comeback very soon.
Way Forward
Although, Litecoin is following its originator’s patterns yet the assumption of forthcoming of support for Litecoin could be wrong. So the word of advice for the investors would be to tread carefully and not to rely completely on mere assumptions. As a matter of fact, for the time being Litecoin is already into the support level. However, the price is fluctuating up and down quickly.