Litecoin Price — Three Reasons For Optimism
In a tough year for almost every cryptocurrency, Litecoin has suffered more than the rest. Losing over 75% of its value from its peak price of $375, LTC may have crossed into the ‘buy’ territory at current prices.
The drop in LTC price came from a few points. The first came toward the end of February when Litecoin promised the launch of Litepay, a project facilitate easy use of LTC for payments by merchants and vendors.
At the time, the market had started to experience a correction and the news saw LTC experience significant gains in anticipation of the launch. However, Litecoin failed their due diligence. They claimed to have trusted the wrong people and were unable to deliver.
The Litecoin Foundation, led by Charlie Lee, did come out to apologize on their part for creating hype on something that was not happening and consequently pumping the price of the altcoin, but, the damage was done. Since then, the coin has been in a relative free fall.
So, is there hope for LTC? Perhaps. And there are three reasons to be optimistic if you’re still holding LTC; or thinking about investing now.
1. The coin is likely in ‘oversold’ territory
With the price free fall, LTC holders have significantly reduced their holdings. There is so much panic selling going on in the space to a point that LTC is likely deep in the oversold territory. Here we see some analysis that prices below $100 likely indicate this.
eToro published research this month that shows this as well; with a conclusion that LTC is currently ‘heavily discounted‘ at current prices.
2. Lee Is Still Pushing To Raise Coin Prices
Tired of being blamed for the coin’s price fall, Charlie Lee in responded by insisting he still has plans to push Litecoin past the $400 mark. He’ll need to do this to silence the doubters around him.
The tweet read:
“I’m trying my best to get LTC to $400 so people like you will stop shitting on me all the time. Who abandoned LTC?!”
He doesn’t say how he plans to accomplish this, he does mention that the mission of the Litecoin Foundation is to advance the platform for the good of the society and not to pump the price of LTC.
Indeed, examples like a recent partnership the Litecoin Foundation struck with TokenPay, a German-based Bank, show that Lee might be able to rectify LTC’s price through adoption.
This move will help the platform to create and deliver cryptocurrency solutions like merchant processing, debit cards, and many other innovative solutions.
Given Litcoin’s less favorable past experiences with Litepay and Mastercard, this partnership makes perfect sense and should help Litecoin gain credibility again.
3. LTC Futures Are Coming
Crypto Facilities, a cryptocurrency futures trading platform based in the U.K, announced it was launching Litecoin futures, a move that will see institutional investors able to get into this space. We haven’t seen that kind of money being able to go toward LTC yet.
According to Crypto Facilities, the addition of LTC futures wasn’t done blindly as there is clear demand from its client’s. Lee commented the same; that it showed there was serious money interested in the long-term price of LTC and investing in it as a tradeable commodity.
This should inject new cash in the crypto market aimed at LTC and in turn raise the liquidity levels.
Here is a LONG chart by Irasor, a tradingview user
BULLRUN coming soon!? Technical Details! Looks great?! by Irasor on TradingView.com
As we see, the technicals show the downward spiral of LTC, but do show several retracements at bottom points; something that could help LTC bounce back from its current price. If the price bounces from the $120 support can repeat as the coin falls to near $50 we may see that as a strong support where the coin can rise from.
As always, it’s important to do your due diligence before investing in any coin.
