The general market began Monday on a rather bearish trend, negating gains made over the weekend. Although many coins are trading in the green over the week, most are in the red over the last 24 hours. The regaining of control by the bears could signal a return to new lows for most cryptos. The same can be said of Litecoin (LTC). It sure feels risky, but the best way out is to hodl.
Litecoin (LTC) prices surge then drop
Litecoin surged by 1.31% over Sunday, a performance that declined from the previous days’ +3.25%. Today, the coin has moved back into the red over the last 24 hours, leaving it only 6.21% in the green. The price decline sees its value drop to $122.24. During the Asian trading hours, LTC surged to reach a high of $127.95, but the bulls could not sustain the momentum, dropping to trade between $121 and $125.
At the time of writing, Litecoin is down by 3.83% against the USD and 2.84% against BTC. There is major resistance at $126 and $128, and major support bases at $120 and $118. If the morning sentiment returns during the European trading hours, LTC could see its value rise to as far as $130, potentially testing $135.
A repeat of recent bearish performances would see it threaten to return to levels below the $120 support line. For token holders who didn’t lock in their gains in the early morning trading, it would be wise to watch the market for bullish moves. Any trend above $125 would signal potential to reach highs of $130.
Litecoin signal buy
Litecoin failed to break below the $110 price level in the last few weeks. It traded at lows of $110 and highs of $111 on May 29th. That resilience indicated that it’s likely to hold even if sentiment fails to improve. It also means that any buys at the moment would be great for any new entrant.
If the target is medium term, prices around $185 would be achievable. The momentum that takes the prices to this level would be similar to the last rally. If the coin’s value breaks above the medium-term target, it could push for the $200 price.
Short term, targets of above $135 and $168 would be reflective of the 55-day moving average and 200-day moving average respectively. However, the medium-term prices are likely to suffer stiff resistances as a result of short-term profit locking. It still makes sense, though, to hold.
The outlook indicates a bullish run could be in the offing and LTC offers one great opportunity in terms of its risk-reward ratio.
What makes LTC a hodl?
Litecoin has seen real movement in the last few weeks in terms of its partnerships as well as being accepted as payment at numerous sites. That trend will continue as the push for global adoption takes shape. What’s working for LTC is its secure network and faster cheaper transactions compared to BTC.
Reacting to recent attacks on Bitcoin Gold (BTG) and Verge (XVG), Charlie Lee said that even Digibyte’s use of 5 different algorithms for mining didn’t make it secure. All smaller coins were in fact at risk of facing 51% attacks. He said:
‘Here’s a quick analysis to show that DigiByte’s 5-algo system isn’t more secure than Litecoin. To match the whole DigiByte network, it costs about $27MM and $1k/hr to attack. But since global hashrate for each algo dominates DigiByte’s, it can likely all be rented for <$5000/hr.”
There’s therefore, a feeling that most mainstream companies would favor using Litecoin over most of the other coins due to its secure network. This could play a big role as we move towards more mainstream use.
For an investor, buying LTC could be due to the same reasons: it’s likely to be accepted as a payment currency by most online merchants. The result would be more value for the coin as demand increase over time. Short-term, current sentiment is a reflection of what happened in the latter stages of 2017. Q3 could be the beginning of a massive price rally and Litecoin could likely do over $300 by then.