Litecoin is a cryptocurrency with many similarities to Bitcoin and other cryptocurrencies; however, it differs in terms of hashing algorithm, hard cap amount, block transaction times and maximum supply limit of 84 million coins.
LTCUSD is one of the most well-known cryptocurrencies with high liquidity and visibility. Traders can trade it against USD or other fiat currencies.
Litecoin Price Predictions
Litecoin is one of the most sought-after cryptocurrencies on the market and represents the second highest total digital asset value. While crypto markets have experienced a recent bearish slump, some experts see this as the start of an upsurge that may signal another bull run ahead.
Numerous factors affect Litecoin’s price, such as market capitalization and adoption rates. Most experts are optimistic about its future; its reward halving event scheduled for August could raise its price further while its partnership with Chiliz is anticipated to make it even more appealing and attract additional investors.
LTCUSD chart indicates a bearish trend is likely to persist over the short-term; however, traders should wait for market consolidation beneath the latest local minimum before opening short positions. A stop loss should be placed below 105 USD (purple solid line) with take profit above recent high of 146 USD (purple dashed line).
Litecoin Technical Analysis
Moving averages and indicators suggest Litecoin is in a consolidation stage, with potential breakout points near $85, $80, and $92 support levels.
Long term, the survival of Litecoin relies on adoption by businesses and governments, competition from other cryptocurrencies as well as its own founder, Charlie Lee’s description as “Silver to Bitcoin’s Gold”, plus other advantages over other coins.
Lightning Network boasts four times faster transaction speed compared to Bitcoin and has an even shorter block creation time, lighter wallet requirements, Scrypt hashing algorithm implementation and SegWit upgrades (along with layer 2 scaling solution Lightning Network). All these advantages make this crypto more appealing than others in terms of user adoption.
Litecoin News
Litecoin was launched as an answer to what its creators saw as shortcomings in Bitcoin network, offering faster transaction confirmation times and lower transaction fees than its main rival.
Litecoin differs from many other cryptocurrencies in that it does not fork off from Bitcoin but still shares similarities, including its Proof-of-Work consensus mechanism and use of blockchain technology. However, its major distinction lies in its block size and speed.
Litecoin’s network can process up to 56 transactions per second, four times more than Bitcoin’s blockchain and with significantly shorter block creation times than Bitcoin.
Traders should take note of Litecoin futures’ increasing open interest, likely as a result of its impending halving in the next 70 days, which will reduce miners’ rewards by 50% and cause price spikes.
Litecoin Trading
Traders can speculate on the price of Litecoin by opening a CFD trade, giving them the flexibility to go long (by betting that its price will increase) or short (betting on its fall). CFD trading is an attractive method of cryptocurrency investment as it leverages one’s investment and may produce higher returns than investing directly into cryptocurrency itself.
Litecoin, often referred to as “Bitcoin’s little brother,” was introduced into circulation in 2011 as an alternative cryptocurrency platform that utilizes similar technology but processes transactions more rapidly and efficiently than Bitcoin. Since its debut, Litecoin has continued to attract investors while seeing its price fluctuate with time.
Litecoin to USD pairs are popularly traded as they represent a direct correlation between cryptocurrency value and that of one of the world’s strongest fiat currencies, making this pair very relevant in trading operations. Their prices may fluctuate based on many factors including regulatory changes and incorporation as a payment option by certain businesses.
