Will Litecoin Set A New High Like Bitcoin And Ethereum?

Litecoin for most of its existence was a top ten cryptocurrency by market cap, but a lack of interest during the recent crypto bull market cycle has caused it to fall out of the esteemed list, and deeper into obscurity.

Oftentimes, it is darkest before dawn, and it could be any moment that things begin to light up for Litecoin again in a positive way. When sentiment shifts, Litecoin trading could become all the rage again very quickly, and potentially send the altcoin to a new all-time high.

Here’s a closer look at Litecoin and if it is lights out for the cryptocurrency, or if a spark is brewing that will soon light up the crypto market with a new, explosive rally.

What Is Litecoin? Digital Silver Explained

Litecoin is a peer to peer cryptocurrency protocol, which relies on the asset LTC. LTC can be sent or received from a secure crypto wallet, similar to Bitcoin. Litecoin is based on early Bitcoin Core code, except its creator, Charlie Lee modified the code so that Litecoin is faster and has lower fees.

There’s also a larger supply of Litecoin compared to Bitcoin, however, only 84 million LTC will ever exist so it is considered to have similar digital scarcity that better puts it on par with silver while BItcoin is digital gold.

Interestingly, both Litecoin and silver have failed to set a new all-time high yet in the recent economy, while both Bitcoin and gold have set their peaks long ago. In the crypto market, most coins have broken their former records, such as Ethereum. Older coins that performed well during the last bull market such as EOS, Litecoin, and XRP have all fallen short of new highs.

This could suggest the crypto bull market isn’t over, and these coins will have their day to shine soon enough.

Why Did Litecoin Get A Bad Reputation?

Sentiment around the Litecoin market is about as low as it gets. Holders of the coin have now spent several years below their former highs, and it is causing more and more holders to capitulate and sell. Even those that wouldn’t otherwise do so are trading Litecoin for other altcoins like Ethereum and DeFi tokens looking for immediate returns.

But the problems date back much further than that. And it all started when the coin’s creator, Charlie Lee, sold off his supply at the exact top of the last bull run, causing prices to collapse onto holders who have now been stuck ever since. Anyone who bought when Charlie Lee sold, would still be stuck holding his bags.

Even worse, Litecoin’s halving failed to produce anything at all similar to what investors have noticed when Bitcoin completes its hard coded event. With the supply slashed, demand should have caused prices to skyrocket. This never happened, and instead Litecoin performed best leading up the halving. Since then, any returns have been meager and prices are back to below even the pre-halving price that Litecoin had reached.

This has left any holders ready to give up, wondering if Litecoin will ever recover and once again see such highs.

When Will Litecoin Light Up The Crypto Market Once Again?

Litecoin could soon have its day in the spotlight, however, and so could silver. The economic environment is quickly turning from growth to value, and given the characteristics of Litecoin and silver, capital could flow directly into these assets from riskier markets like DeFi, or stocks. If the two assets rise together, the digital silver narrative will be reborn like never before.

The altcoins also uses the Scrypt consensus algorithm for mining, which is a much greener technology than what Bitcoin offers – which has been a critical sticking point with the market over the last several months. Litecoin solves these issues, while maintaining most of what Bitcoin does best.

If Litecoin markets begin to turn, Litecoin trading could heat up again and reach new all-time highs faster than anyone is ready for. When markets reverse after such a long downtrend, sellers are completely exhausted and all that’s left is buyers. When bottom shorters begin to squeeze, the market can move like a runaway train ready to run off the tracks.

In the past, Litecoin has moved more rapidly once a new all-time high is reached than any other coin in the space. And that’s exactly what could come next if a breakout occurs.

How High Could Litecoin Go With A New All Time High Set?

Failure to set a new all-time high while its crypto market brethren have done so with relative ease makes Litecoin look especially bad. But with the market structure and technicals on Litecoin’s side, further downside is unlikely and after so many retests of the current level, up will be the only way left to go.

When this happens, there’s two ways traders can play the market. The most obvious route is by opening a long on the LTC versus USD trading pair on PrimeXBT or another margin trading platform. However, a potentially more lucrative trade could be in the LTC versus BTC trading pair, in which Litecoin is far more oversold and performing even more poorly.

Using the altcoin versus Bitcoin chart to determine when to go heavy on Litecoin and when it will outperform Bitcoin and the rest of the market is possible with the right technical analysis tools. Finding the right resistance level that remains to be broken at around $400, and preparing for the reversal from current lows could help to take full advantage of this potential opportunity.

Considering the bearish sentiment in Litecoin and the rest of crypto suddenly, staying protected with a stop loss and other Litecoin trading tools is completely necessary to keep capital growing in the long term. The rest comes down to Litecoin itself, and if it is ready to finally set a new all time high price record over the last bull market peak. If Litecoin can break $400, new highs at around $1,000 or more are expected.


Exit mobile version