Litecoin (LTC) is currently trading at around $86 following a 4% drop in the last 24 hours.
As mentioned earlier in the week, LTC has seen exponential growth since the beginning of March, leading the current mini bull run with a massive 40% increase in price. However, it seems LTC has now started to consolidate.
Looking at the chart above, the 200-day EMA has already crossed both the 50 and 20-day EMAs, and LTC is trading quite far above that support level, which sits around $64. The 50-day EMA, which sits around $55, is also showing strong support for consolidation way above the 200-day EMA.
Volume, on the other hand, has decreased substantially. At the time of writing, LTC volume across major exchanges is about $2.6 billion, whereas just a week ago it was sitting close to $7 billion. Could thinner volumes mean buyers are back in charge? One could argue that depends on what happens to Bitcoin, even though Litecoin’s rally started before BTC’s. Does that mean BTC is currently following LTC and not the other way around?
Only time will tell. I would, however, enter any new positions with care until we see more substantial volume coming into the market.
For now, price can really go both ways, although I doubt there’s a chance LTC will break bellow its current support levels.
Gold has an $8.5 trillion dollar market cap. Silver is $15bn That is .17%. $BTC has a $90bn mkt cap. $ltc is $5.7bn which is 6.4% of $BTC. Silver is at least useful for industrial production. $ltc is a glorified test net for $btc. I don't get this rally. Sell $ltc buy $btc.
— Michael Novogratz (@novogratz) April 3, 2019
Even though LTC has seen a recent pump in prices, billionaire Bitcoin investor Michael Novogratz slammed the altcoin for being a glorified Bitcoin testnet.
What’s surprising is that it took Novogratz so long to rail against Litecoin. After all, Litecoin’s price rally started well before Bitcoin broke out. The LTC price has been on a tear since year-end 2018, over which time it has rocketed by approximately 150%. That’s about when the coin’s creator Charlie Lee revealed his interest in integrating privacy features into the cryptocurrency, giving Litecoin the chance to forge its own identity.
Could Novogratz be worried about the brand new features Charlie Lee would like to see implemented in Litecoin? Can LTC ever be a serious contender to BTC?
I’ll leave that speculation to you guys.
Litecoin was released in October 2011 by Charlie Lee, a former Google employee. It was a fork of Bitcoin with the main difference being a smaller block generation time, increased maximum number of coins, and a different script-based algorithm.
Litecoin is one of the leading cryptocurrencies and is one of the Top 10 cryptocurrencies by market capitalisation.
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By Nawaz Sulemanji – April 11, 2019
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