$100 Litecoin Looks Poised for Greater Upside
Litecoin prices moderated on Tuesday, but continued to hold above $100 as the outlook brightened on the world’s no. 7 crypto.
LTC/USD Price Levels
The Litecoin-dollar exchange rate slipped on Tuesday, but continued to trade near record highs. At press time, prices were down 1% at $100.75 for a total market cap of $5.5 billion.
Trade volumes reached $338 million over the past 24 hours, which is equivalent to roughly 29,290 bitcoin. That’s well below the nearly $636 million in turnover witnessed Dec. 2.
Nearly 20% of transactions on Tuesday occurred on the GDAX platform. The OKEx exchange accounted for roughly 15% of the volume. Crypto juggernauts Bitfinex and Bithumb turned over between 8% and 10% each.
The cryptocurrency has added more than 7% over the past five days and is strongly bullish, based on the MACD and RSI charts. An RSI reading of 74 suggests the buying frenzy may be overdone and due for a minor pullback.
Prices peaked above $106 earlier this week for a new all-time high. Litecoin’s 52-week trading range is between $3.46 and $106.22, which represents a change of nearly 3,000%.
The next major milestone for Litecoin appears to be $110. Based on recent price action, that level appears to be a foregone conclusion as capital continues to pour into the altcoin market.
Litecoin’s Bright Future
LTC is enjoying tremendous support from the broader cryptocurrency community. Its gains have been partly attributable to bitcoin’s meteoric rise. As a less expensive, more readily available cryptocurrency, Litecoin is widely considered to be the silver to bitcoin’s gold. This means both cryptocurrencies often trade in the same direction, despite vastly different price points. This makes perfect sense, given that Litecoine was created as a hard fork of the original bitcoin blockchain.
One of the chief advantages Litecoin has over bitcoin is its focus on small transactions. The payment platform targets businesses that require a large volume of smaller transactions that need to be processed fairly quickly. Litecoin processes a block every 2.5 million, which is a fraction of bitcoin’s 10-minute mark.
Bitcoin’s viability as a payment system has been brought into question by many within the cryptocurrency community. That largely explains persistent efforts to fork the cryptocurrency in favor of a scalable alternative.
Litecoin is also considered one of the most attractive altcoins due to its inclusion on the Coinbase trading platform. By being listed on Coinbase, LTC joins elite company in bitcoin and Ethereum.
Coinbase is the largest U.S.-based cryptocurrency exchange and has more users than brokerage Charles Schwab. Coinbase currently has more than 13.3 million users, according to industry data. That includes 300,000 users in the last week of November. By comparison, Schwab reported 10.6 million active accounts for October.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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