Despite not having been named by the US Securities and Exchange Commission (SEC) in their recent lawsuits against Binance and Coinbase, the Litecoin (LTC) price is struggling. LTC/USD was last changing hands around $87, down close to 7% on the week and nearly 10% from its multi-week highs over the weekend in the $97 area. Nevertheless, Litecoin has managed to hold onto a market capitalization of over $6 billion, with its market cap last at approximately $6.45 billion.
LTC bulls find relief in the fact that Litecoin found support once again earlier in the week at its 200-Day Moving Average (DMA). However, the bearish mid-week price action presents concerns, as LTC was unable to break back above its 21DMA on Wednesday and is down more than 1% already on Thursday. This suggests that a retest of the 200DMA may be on the horizon.
Despite these short-term fluctuations, Litecoin continues to exhibit a bullish long-term chart pattern, which combined with important upcoming fundamental developments, could propel the cryptocurrency higher later this year. Since last November, LTC has been forming a bullish ascending triangle pattern with support originating from the sub-$50 lows and resistance coming from early yearly highs in the $103-105 area. Such formations often precede a major bullish breakout, further fueling the speculation that LTC could pump 50-60% from current levels to test major 2022 resistance points in the $135 to $145 area.
Moreover, Litecoin’s fundamentals support this positive outlook. In just 54 days, the block reward for Litecoin miners will halve from 12.5 LTC per block to 6.25, reducing the cryptocurrency’s inflation rate. Analysts deem this to be a crucial potential bullish catalyst. As for Litecoin’s use case as a secure, decentralized payments blockchain, it continues to demonstrate strength. When transaction fees spiked on the Bitcoin and Ethereum blockchains in early May, Litecoin experienced a surge in network activity, with the 7-day moving average of daily transactions reaching a record high of nearly 500,000. Interestingly enough, transaction fees went down during this period.
This continued adoption of Litecoin as a means of payment is made possible due to its fast transaction times and low fees. Increased usage on cryptocurrency payments platform Bitpay further demonstrates the coin’s successful application in the field.
For investors seeking high-risk-high-reward opportunities, participation in crypto presales provides a chance to support upstart crypto projects and potentially reap exponential gains. One such project, DeeLance (DLANCE), aims to replace middlemen like Fiverr and Upwork by creating a crypto and NFT-powered metaverse that revolutionizes remote work and the $761 billion-dollar recruitment sector. DeeLance has garnered significant interest, raising nearly $1.29 million in the launch of its $DLANCE token presale and securing a $1.12 million strategic investment from top venture capital firm Bitgert Ventures.
Taking a balanced approach between established cryptocurrencies like Litecoin and more speculative, early-stage projects like DeeLance, investors can both support the future of crypto technology and capitalize on promising opportunities.
Source: Cryptonews
