Initially created by former Google worker and later CTO of Coinbase Charlie Lee, Litecoin (LTC) was one of many first severe altcoin initiatives developed with an precise function.
Whereas Bitcoin was seen as “digital gold” and a possible long-term retailer of worth, Litecoin was created to be “silver” and used for on a regular basis functions.
In essence, Litecoin possesses lots of Bitcoin’s options, however is “lighter” to hold and faster to transact. Lee believes the purpose and mission of Litecoin is to be a stay testnet for Bitcoin.
LTC has had a turbulent time in 2019, however how will Litecoin fare in 2020? Will larger volumes and recent money spur a brand new bull run after the disappointment of the halving?
Primarily, for any worth appreciation to occur, we want severe quantity coming into the cryptocurrency market.
Within the quick time period, the outlook for Litecoin is sort of grim.
Previous to mid-June, the altcoin was the most effective performing digital asset of 2019, rising greater than 170% in fewer than 90 days and peaking at round $145. Nevertheless, the uptrend sparked by the Litecoin halving didn’t final.
The truth is that the Litecoin halving, which occurred just a few months again, could have been a ‘purchase the hearsay, promote the information’ sort of occasion. Seasoned merchants took earnings weeks earlier than it occurred.
A severe summer time downtrend then noticed LTC tumble to round $49 earlier than a market-wide pump final month following Chinese language President Xi Jinping’s bullish feedback on blockchain.
Nevertheless, the constructive sentiment appears to have light away once more and LTC is again in a downtrend.
In Bitcoin phrases, the outlook is even worse.
Trying on the chart above, we will instantly conclude that LTC is close to its yearly low towards Bitcoin.
In the mean time, LTC is simply above its 20-day EMA, sitting round 607,800 sats. Quantity-wise, worth is discovering some weak help near a key degree, between 600,000 and 710,000 sats. The subsequent sturdy degree of resistance must be felt round 900,000 sats.
If LTC is ready to break above the 50-day EMA and maintain some help beneath the 200-day EMA, we may see a sudden shift in investor preferences. Nevertheless, in the interim, it appears to be like like Litecoin is in for a interval of accumulation.
Litecoin in 2020
Given Litecoin’s total panorama, each by way of USD and BTC, one may argue the altcoin is posed for a constructive run throughout 2020.
For Litecoin to start out a severe bull run, I imagine recent money wants to return into Bitcoin initially earlier than traders and merchants transfer some positive aspects into LTC.
The explanation why I argue BTC has to pump first is because of historic causes. each charts, it appears LTC/BTC strikes earlier than LTC/USD.
Due to this fact, I imagine we may probably see a mini-rally earlier than Could 2020 given the upcoming Bitcoin halving, which can cut back Bitcoin’s block reward by 50%.
Throughout 2019, LTC pumped previous to its personal halving, which took worth near all-time highs in Bitcoin phrases.
If Bitcoin recovers to its 2019 highs, round $14,000, we may positively see a few of the positive aspects trickling down into the highest altcoins comparable to Litecoin.
Charlie Lee has additionally confirmed privateness is on the horizon for Litecoin subsequent 12 months.
Litecoin is making strikes so as to add privateness options by means of the Mimblewimble protocol.
In line with Lee:
“We’re working with the Grim++ builders so as to add an implementation of Mimblewimble. It provides an extension block to the Litecoin main-chain. You possibly can transact between chains to make use of enhanced privateness.”
The purpose could be to present Litecoin customers improved privateness options when transacting.
If there’s an altcoin essentially prepared for a brand new push, LTC appears to be the one.
Will LTC moon in 2020? We’ll have to attend and see.