Litecoin (LTC): Take Some Deep Breaths, and Don’t Do a Thing
Litecoin (LTC) is one among the top ten cryptocurrencies to experience a dip in price today after news of a computer glitch in Japan reached the crypto mainland.
All the major currencies are today in the red as news that Zaif exchange in Japan suffered glitch that allowed seven bitcoin enthusiasts to get free bitcoin. Although the incident occurred on 16 February 2018, Wednesday saw Litecoin shed almost 9% off its day price as the night heaved with exasperation.
Though not the definitive catalyst to the drop of LTC, the events in Japan have suddenly contributed to a quick check on Litecoin’s price rally. Separately, a news release showed that BitFunder owner Jon Montroll has been arrested by the U.S. government. The U.S. Justice Department charged him and exchange with fraud.
Litecoin itself has had a fairly good week despite the negatives associated with the Litecoin Cash fork earlier. But the price of the 5th ranked cryptocurrency slid downhill to trade at $212.00 today through this represents a gain from the opening low of $201 it dipped to after that weird story from Japan.
Not a bad move, but this still represents a drop of 6.10% against its price on Wednesday, when it was valued at $228. Likewise, 24-hour trading volumes shrank from $1.4billion to under $1billion at the time of going to press.
The Litecoin Bull Run had begun on 3 February 2018 when the crypto had a measly market cap of $7 billion. It appeared to be destined to break into its own stride, gaining momentum to eventually trade at a new high of $251.
This gain momentarily made it among the best performers in the top10 list. Bear in mind that LTC had dropped to a disappointing $100 bottom on 2 February 2018. Within two weeks, however, LTC jumped almost 100%to close with $251 on February 19th. It has bounced around the $230 mark since then. By yesterday, it had a market cap of $12.5 billion.
Litecoin price movements
So, what could have contributed to the upsurge in the price of LTC post 2 February, gaining in overall price movement, before yesterday? We should note that it has gained by 50% compared to BTC’s 10% over the same period. It wouldn’t be farfetched to suggest that Litecoin has the potential to pull away from Bitcoin’s shadow.
If you look at Litecoin’s price charts for the past two weeks, you will notice that there’s high resistance at $250 and that LTC essentially, is firmly locked within its SMA 20 and SMA 200 periods. Its MACD has decreased, but signs of positive movement persist.
The key here is that Litecoin is likely to retrace even higher from this sudden pullback. Suggestions are that we will witness base support forming at around $205 and resistance levels will bounce between $235 and $239. The next few days could give an indication of whether we can see Litecoin pull away past the recent ATH of $251.
$20 trillion free bitcoin shakes crypto market, including Litecoin.
Fundamentally, Litecoin may be able to benefit where Bitcoin and Ethereum stumble. The thinking is that investors may be attracted to Litecoin’s potential to break the pattern with Bitcoin and chart its own path.
This, though, seems tricky going by how the entire market toppled after the revelation from Zaif that one “lucky” bitcoin investor almost made off with $20 trillion worth of BTC. In that incident, the Zaif system had erroneously indicated that bitcoin was valued at $0.
Though not a major cause for alarm, we are watching to see how Japan reacts to this latest debacle featuring Bitcoin and the Bitcoin exchanges registered in the country. Remember the $500 million heist at CoinCheck earlier in the year?
Will Litecoin Cash underpin Litecoin (LTC) growth?
The hard fork that led to the LTC splinter Litecoin Cash (LCC), incidentally did not derail LTC, after its launch on Sunday this past week. In fact, LTC price value surged on Tuesday by almost 9% pushing Litecoin’s market cap to 12.1 billion.
However, in the weeks leading up to the proposed fork, Charlie Lee had cautioned LTC holders against using Litecoin Cash as there were concerns that it could be a fraud. Lee had said (then) that neither he nor any member of the Litecoin team had any intention of forking Litecoin.
He emphasized that talk of there being a fork was a scam and that it had nothing to do with Litecoin. Word quickly went round that Litecoin Cash had malware that could be used to phish or steal LTC holders’ private keys or seed.
Litecoin (LTC) has forever been in the shadow of its illustrious big brother Bitcoin. And it always happens that what affects Bitcoin affects the entire crypto market.
Look out for Litecoin price surge and a possible rally in Q2 of 2018. This isn’t the time to worry about Litecoin Cash if you are an LTC holder. But be cautious as everything that is strange can happen in the crypto world.