We’ve finally seen a pause in the crypto rise that we’ve seen over the last two weeks. Most currencies seem to have retreated somewhat, while others have moved sideways for most of this week’s trading activity. LTC, Litecoin’s (LTC) counterpart, is no exception. In the last 24 hours, the Litecoin price has dropped by around 5%. The following is a list of recent events:
- Despite increasing activity on the LTC network, LTC has seen a decline in value.
- The cryptocurrency has made a significant recovery from its year-end low.
- Before the next upswing, we predict LTC to stabilize around the $120 mark.
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Understanding Litecoin’s (LTC) Price Movement
The fact that on-chain activity is extremely remarkable should offer LTC investors a lot of optimism. This is a good sign for the future since transaction volumes continue to rise. We may conclude from this that the current slowing pace results from the overall market trend. In the medium term, however, there are a few signals of weakness. LTC, for example, has dipped marginally from its 50-day simple moving average.
Additionally, momentum indicators suggest that the market is losing its footing. In any event, we don’t foresee a dramatic drop in prices. On the other hand, LTC is anticipated to consolidate around $120. The currency is expected to find significant support at around $116 even if the decline continues. After that, Litecoin is expected to continue its upward trajectory and reach $200 in the second quarter.
Are there any solid reasons to invest in Litecoin?
With many similarities to Bitcoin, it’s an ancient crypto-asset among the top ten most valuable ones on the market right now. Many altcoins followed Bitcoin’s lead, attempting to expand on or improve upon the original cryptocurrency’s goals. Other digital assets exist with Bitcoin as a supporting player, similar to how silver sits next to gold. As Bitcoin is regarded as digital gold, Litecoin is frequently referred to as digital silver. Just because of this, Litecoin has huge potential as an investment and a long shelf life in the volatile crypto market.
The LTC supply is four times larger than the Bitcoin supply, which is limited to 84 million LTC. Additionally, Litecoin has reduced the block creation time from 10 minutes to 2.5 minutes, giving it a speedier method of transmitting money. Because of this, Bitcoin has become more of a store of value, while Litecoin has become the primary means for exchanging crypto. Litecoin garnered significant attention since its creator Charlie Lee sold his assets at peak prices, which might have led to a fall in the currency’s value. On the other hand, Lee accurately predicted the peak and cautioned users of a possible drop to $20. To put it another way, Litecoin did exactly that when the bear market was at its lowest point. Even if Litecoin’s price has fallen to its lowest point, it’s still a smart bet.
Investing in Litecoin in 2022
Creating a cryptocurrency exchange account is the first step in investing in Litecoin. You may place buy and sell bids on a crypto exchange’s trading platform to purchase and sell cryptocurrencies. There are many bitcoin exchanges to choose from. When selecting a broker, you should think about the following things:
- One broker will not let you purchase or sell the thousands of cryptocurrencies in circulation. Make a list of the other cryptocurrencies you want to invest in to ensure that your chosen trader meets all of your requirements.
- While some cryptocurrency brokers offer novice investors easy-to-use order forms, others cater to more experienced investors with robust charting and analytical skills. Your trading expertise will help you choose the right platform for your requirements.
- Some fees and commissions must be paid. Every time you buy or sell bitcoin, you’ll be charged a commission fee. Before creating an account, check each broker’s charge schedule to see how much money you’ll lose if you’re a regular trader.
In comparison to Bitcoin, Litecoin’s platform claims to have transaction speeds that are four times quicker. They’re also a lot less expensive than Bitcoin, which costs roughly $4.38 per coin. Because of its extensive history and capacity to withstand times of extreme volatility, Litecoin can be an excellent choice for long-term investors. Your investment might pay off in the coming years if you like taking chances. It’s still too early to tell if other blockchains will overtake Litecoin in terms of innovation.