Litecoin (LTC), among the top cryptocurrencies by market capitalization, has taken a somewhat downward trajectory in recent weeks, falling by 1.5% over the past week and 31% in the last month, to trade around the $65 mark. A perspective that argues for this being part of a larger downward phase is that since the start of the year, LTC has reported a drop of 7%, which puts it behind major tokens like BTC, ETH, and XRP, that have shown recovery since January.
However, these discouraging figures could also be viewed as market skepticism. One might assert that considering the relentless selling witnessed over several months, LTC’s value could be severely underestimated and could bode well for a bullish reversal. From a technical standpoint, with LTC’s 30-day moving average severely undercutting its 200-day average, the downturn may have ended and what might follow is a bullish correction.
Further supporting this prognosis, the relative strength index which has lingered under 30 after a fall to 20 nearly eleven days ago, signals a massive oversell. This implies that LTC seems likely to spring back. The slight rise in short-term support from mid-August further fuels sentiments of LTC’s recovery.
Nonetheless, these signs of improvement may be offset by an absence of strong fundamentals. LTC’s halving earlier in the month wasn’t successful in stoking a rally, rather, it saw the cryptocurrency dump. Contrarily, the improvement in network health depicted by the increased hashrate after the halving indicates LTC’s sound standing as a digital asset. This, coupled with it being reportedly oversold, could trigger a recovery soon, potentially raising its value to settle at $100 by the year-end.
A point worth noting for prospective investors is that LTC, as an established altcoin, might witness slow and steady price gains over a few months, making it advisable for short-term traders to diversify into newer tokens. One such promising token is Launchpad.xyz (LPX) – a one-stop Web3 trading platform having drawn over $1.4 million through its sale over the past month.
This platform would offer traders a comprehensive ecosystem of features and tools, potentially creating a buzz in the Web3 and DeFi space. The token will bear real utility as its usage extends to payment of Launchpad’s fees, subscriptions, and also to earning staking rewards.
While these points present a volatile landscape for cryptocurrencies like LTC at large, what remains crucial is the trader’s risk tolerance and market understanding to make the most of the situation. Remember, investments in crypto assets come with significant risks and the possibility of losing the entire capital.
Source: Cryptonews
