Today we’re going to take another look at Litecoin, one of the first altcoins created way back in 2011. Just like many classic cryptocurrencies, Litecoin is designed to become a payment network to replace traditional banking. But the competition is tough, and Litecoin faces the same scaling problems as Bitcoin. Can Litecoin succeed?
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Today’s topic is Litecoin and Crypto Briefing’s Analysts took a close look and found plenty of reasons to be optimistic–and a few causes for worry. One thing Litecoin has going for it is the Litecoin Foundation, which is working to build partnerships and extend its merchant network. The team is one of Litecoin’s biggest strengths, and the community adoption is also solid. But Litecoin’s technology is only slightly better than Bitcoin’s, and a lot of it can be attributed to just the shorter block time. There is no official roadmap, but we can expect Litecoin to include the Lightning Network, Atomic Swaps, and Confidential Transactions.
That gets Litecoin a C by our analysts, who believe that the threat from the competition could be mitigated by good fundamentals and a competent team. You can read the whole investment-grade report for free on CryptoBriefing.com.
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Now while investing in Litecoin and holding long-term may not be the best strategy, some short-term traders have been taking advantage of the choppy conditions in the token’s price action. Of course, short-term trading involves a lot of risks and is not suitable for all. But for those who are interested, let’s take a quick look at the LTC/USD 4-hour chart to identify any potential trading opportunities.
After its massive drop back in November 2018, the pair has found median support at $30, a soft resistance at 35 and a harder resistance at 39. The pair broke above the 4-hour Ichimoku cloud beginning of February and appears to be on its way to the resistance levels. The $39 resistance also falls on the 50% Fibonacci retracement level which tracks the drops on November. That means breaking above it could be relatively difficult, and we could see another round of drops towards the support levels later on. The hard, medium-term support is at $22.
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Here’s a disclaimer, I personally own some Litecoin along with other cryptocurrencies. But you should only invest the money you can afford to lose in the crypto market. For more on risk management, please visit investdiva.com. I’d also like to hear from you and your thoughts on Litecoin. Once you’ve subscribed, head over to the comment section and let me know if you think Litecoin can beat the competition.
Remember that as the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio. Don’t forget to complete your risk management due-diligence before developing your investment strategy.