Litecoin together with the market as a whole has been experiencing strong volatility and fluctuation for weeks now.
After aiming for the $100 major mark and reaching close $95.00, Litecoin until now has declined for 30 percent but found stable trading ground. That is a $30 loss in a couple of days but compared to many other top-ten cryptocurrencies, Litecoin is not dropping lower than the $60 major supportive level above which it is trading right now. This has been going on since Sep 8 and it could be called a struggle to gain or a saving mark for traders.
However, on the downside – the pair LTC/USD could possibly be aiming for the particular Fibonacci retracement levels that are between $51.00 and $60.00.
The trading volume since Sep 9 is lower than 50% even despite the help of Asian exchanges like Bithumb with 21 percent OKCoin.cn with 16 percent (from $900 million to $380 million). Alarming could be the fact that its market cap is closing in to the $3 billion mark and going lower.
The gold rush that was spreading out on the Initial Coin Offerings was barricaded for some time now by Chinese regulation towards ICOs banning them. This caused a sharp declining by the top market cap virtual currencies. On the other side as you probably have heard there are rumors spreading it could ban Bitcoin exchanges which would affect 23% of bitcoin traders that the country counts and it is the place with the world largest bitcoin miners. For some analysts, the latest crackdown is a backhanded attempt at controlling capital flight.
If we speak on the longer term understanding and Litecoin’s future, it obviously looks more optimistic than the market now. It do correlate bitcoin’s price a lot, but it is its rival first and foremost. Litecoin aims to do what bitcoin lacks – faster confirmed payments and more adaptive to up-scaling. Litecoin will be producing only around 84 million coins ever.
The logic behind it is very simply explained by its creator Charlie Lee, who said that what makes Bitcoin different is its use as a storing value in contrary with Litecoin that is planned to make financial services easier and faster.