The founder Charlie Lee launched a new hashing algorithm in the name of Litecoin, which offers faster transactions than Bitcoin. Moreover, it is more scalable and suitable for P2P crypto transactions.
Now merchants no longer have to wait an hour for Bitcoin-based transactions and can choose Litecoin as an alternative. However, it is not a time-tested solution like Bitcoin, so a user should use Litecoin for small transactions.
It is an open-source project that runs on a Proof-of-Work consensus to verify transactions. The differences with Bitcoin lie in scalability and transaction processing rate.
Litecoin miners solve a mathematical problem to verify transactions in the blockchain. This needs huge electricity. Bitcoin is also facing fundamental issues because the expense has been rising. As a result, the profit margin has been decreasing, especially this year.
Litecoin’s MimbleWimble extension feature is introduced to improve network anonymity. After that, it was delisted from many crypto exchanges. The world’s largest crypto exchange Binance expressed concern about the new improvement, but it does not affect the price of LTC.
At the time of writing, LTC was trading around $52.13 with a support of $44. It will face strong resistance at around $60. We can call it a short-term bullishness if it crosses $63. Otherwise, it will consolidate between $60 and $40.
The MACD and RSI indicators are bullish on the daily chart, but candlesticks are forming around the baseline of the Bollinger bands. That means it may cross the baseline and face resistance around $60 or come down to the level of $44 again. Read more about the Litecoin predictions to know if it is the ideal time for investment or not.
On the weekly chart, it is long-term bearish. It may go down to the $32 level, and $100 is a strong resistance level for the long term. It will not cross the resistance level this year, which means it is available at a 50% discount. It is a great time to accumulate some coins for the long term.
The market is volatile this year, so it is a risky investment in the short term. Please analyze the fundamentals and invest for the long term.