Litecoin, back to basicsCurrently in a wave of uncertainty, I wanted to take a look at LTC as one of the key market driver after the big 4 and ADA. Litecoin does have around 10 biliions market cap and is listed as the 6th major cryptocurrency.
The recent price evolution was mainly guided by the cryptoban in South Korea. LTC has lost more than half his price since all time high (51.3%). During this bearish period it has stayed mostly within the 2/3 center of the regression trend. Currently stuck between 161 support and 219 resistance.
As the Korean government report mention, the crypto trading will not be ban only the anonymous account will. Therefore, they only need to link their trading accounts with a real bank account. This measure might look logic for most of the people, while in South Korea this is not. The crypto market intend to be as distant as possible from the centralization of the banking system, in that way, it is a clear setback / loss for the cryptoworld. That being said, the worst case scenario is an extension of this process to the rest of the world, which can be a real disaster. We see exception in small countries around the world who embrace the Cryptocurrencies (not only the blockchain), we could here mention Switzerland who had a recent event with the crypto community and their political elites who clearly see this as a positive factor for the economy.
Back to LTC, the uncertainty regarding the probability of the extension of the South Korean mesure to the rest of the world remain low, but still exists and must not be ignored, therefore we could expect LTC to get back on a bullish trend as this case can be look (in a certain way) as settled. For some investors and analyst, this marks the end of the period and a great opportunity to buy coin at a lower price.
For what the technical analysis shows us, their is still a certain downside margin before touching the resistance mentioned above. The graphs looks pretty much like a school case scenario where the Fibo retracement match almost perfectly the support/resistance. While I don't expect the price to get below 160 USD/coin, some analysts see the probability that the price hit 140 or even break that major support. In both case, a rebound is expected in the days to come (if their is no political news popping again)
In conclusion, I see LTC as a tool strongly bended by the media intelligence and the political events. If the overall markets performs well LTC will be in the group. Don't forget that LTC is on Coinbase, the main platform to buy crypto via fiat currency and his the only of the offered coin who don't have huge transfer fees. That give him a advantage and the opportunity to outperform BTC and ETH.
Analysis done by The Foil
23.01.2018 21:46 CET
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