Why Is Litecoin Sinking? Will LTC Retest $120 Mark?
Litecoin was among the top five cryptocurrencies a few years ago. After the founder of LTC, Charlie Lee, declared that he sold all his LTC to focus more on the development of blockchain technology, then the price of the coin declined significantly.
It is designed on a Bitcoin protocol to enable peer-to-peer exchanges at affordable costs. The aim is to enable faster, more secure, and low-cost transactions. The total supply chain of Litecoin tokens has a hard cap of 84 million. It also employed an integrated layer-2 scaling solution.
It works on the PoW consensus. Currently, 70 million LTC has been mined out of the total 84 million. Indeed, LTC is one of the popular cryptocurrencies; over 3,000 e-commerce stores and merchants accept LTC as payment. It is a cost-effective and faster cryptocurrency for developing countries.
At the time of writing, the LTC price is trading around $135. In the short term, the chart is bearish, trading near the resistance level of $150. On the downside, $120 is the support level of this coin. It has been consolidating in a range from the last few months, making a recent high of $302.
On the daily chart, RSI is stable at 41, and MACD is bearish. However, the interesting thing is that today’s candlestick is breaking the baseline of the Bollinger Band and may move further down to the level of $126.
We can say it is a decent chart for active investors as a long-term investment. Indeed, it has strong fundamentals, but sudden news from the officials declined the price. However, due to its popularity in the market, it regained its value, now it is consolidating again in the lower range. Let’s dig deeper to find more details of Litecoin’s future.
On the weekly chart, candlesticks made a higher high and higher low pattern, which indicates a bullish sign. It creates a support level of around $130; Litecoin could make an upward movement to $370, which makes it a great investment.
The MACD on the weekly chart is bearish, but RSI is stable at 45. The best thing is that the volume of this crypto is increasing, which means investors are interested in this coin. Indeed, the long-term view of the LTC coin is bullish. However, we think $125 is the ideal price to buy Litecoin. The daily chart is bearish so that the price may come down again at the support level; that will be the ideal time to buy.
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