Will Litecoin (LTC) Recover From Bear’s Grip?
Litecoin is one of the oldest crypto coins in the market, but it has struggled throughout this year because of uncertainty in the crypto world. It is one of the most underappreciated coins in the crypto space. Like the stock market, the crypto industry is also influenced by investors’ sentiments.
Litecoin helps to transact small transactions faster than Bitcoin. However, illogical emotional problems with certain assets like Litecoin also make the situation tough for the native coin. Litecoin, as a fork of Bitcoin, was in the top five list based on the market cap, but now it has been dethroned by other crypto assets.
Indeed, Litecoin is a competitor of Bitcoin in the peer-to-peer payment category, but most investors prefer Bitcoin because it is a time-tested and secure solution for large transactions, while they prefer Litecoin for small transactions because it offers faster transactions at a lesser fee.
Experts find that crypto investors are not interested in Litecoin because they have found a better alternative in Bitcoin. That is why LTC failed to reach new highs compared to BTC. It is also supported by future and open interest. Litecoin’s open interest is lower in comparison to other payment-focused blockchains.
Due to the uncertain time, the crypto market has become the worst victim. Many altcoins have recovered from the downtrend, but LTC is an exception. LTC has been consolidating, so many investors lack interest. So it is better to check out our LTC predictions before making any final buying decision.
On the daily chart, we can find a sideways movement in Litecoin in the last five months. At the time of writing this post, LTC was trading around $54.84, consolidating between a range of $50 and $65.
Now the daily candlesticks are forming in the upper range of the Bollinger Bands, which suggests short-term bullishness. It is also supported by RSI, which is around 50. That means you can invest for the short term.
On the weekly chart, candlesticks are forming in the lower range of Bollinger Bands, and RSI is around 38. In the last five months, RSI has hardly gone over 40, which suggests long-term bearishness on the Litecoin chart.
That means you should invest in this coin for the short term. However, you can consider it for the long term if it breaks the short-term resistance decisively. Please add it to your watch list and track the price movement.