Litecoin finally showed its true colors and joined the Bitcoin mania to reach for crazy new highs this week. Here’s what’s been going on.
Litecoin Price Action
Litecoin went from $217 to testing the all-time high level of $420 on Tuesday, before erasing some of the gains.
At this point, we can all agree that these cryptocurrencies are moving at an unpredictable pace. This is mainly because many newbie investors with limited or no investing background are jumping in to get their piece of the pie.
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This has created an environment of extreme bullishness with limited or no risk management techniques put in place, which is preventing normal profit taking.
Looking at the chart…
Cryptocurrencies have proven to be incredibly unpredictable. However, there is still a chance that we see a pullback towards the key Fibonacci retracement levels at $331 and $277 before we see further gains in Litecoin price versus the USD.
Cryptocurrency Exchanges Struggle to Keep Up
Some cryptocurrency exchanges such as Coinbase were not prepared for this surge. So they had to literally disable Litecoin trading to figure out the next steps.
Coinbase’s latest trading disruption underscores the fragility of the trading platforms where the the bulk of digital assets currently change hands. These exchanges are basically startups trying to cope with immense growth, and trading disruptions and withdrawal freezes are fairly common.
Litecoin is the 4th largest cryptocurrency by market cap, trailing behind Bitcoin, Ethereum, and Bitcoin cash, standing at around $7.5 billion as of today. It is also reportedly the most-traded digital asset on Coinbase’s GDAX platform, surpassing both bitcoin and Ethereum.
Litecoin is considered one of Bitcoin’s main competitors. But it is different than Bitcoin in that transactions are faster, which could make it more useful for payments.
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