Litecoin, or LTC is currently the seventh biggest cryptocurrency on the market on Coin Market Cap. The price for it shot up from $50 to $366 in December. Unfortunately, right after it went down to $108 and the rest of the market also went down as well. The coin really is a favourite when compared to other coins and this is especially the case if you look at investors. They often refer to it as being digital silver. Bitcoin on the other hand is digital gold. This may have been the case but LTC is starting to lose a lot of its appeal and there is no telling why this is the case or how long it will carry on for.
This doesn’t actually have anything to do with the fact that Charlie Lee is distancing himself from the cryptocurrency. The project has lost a lot of its potential and value as an alternative technology and if you look at the bigger picture, you’ll find that it has already set out to achieve what it wanted. The people who created Litecoin wanted to increase the speed of transactions and they also wanted to increase the speed at which things happen as well. Other coins, such as ETC and even EOS have accomplished a whole lot more however and this can add a spanner to the works. Litecoin really is a good alternative to Bitcoin but this stems from the fact that it was created to achieve a similar goal. Charlie Lee believes that LTC is like a quiet road, whereas BTC is a busy highway. He stated that it’s much easier to try and predict the kind of logic that will come as a result from this, and that is the fact that there may not be a need for Litecoin in the near future. Some analysts are stating that Charlie Lee is actually trying to distance himself from the Litecoin cryptocurrency and one explanation for this is that it has overextended its own rally. On top of this, the price has not corrected itself as much as it should have done.
When you look at the LTC/USD week, it looks like a nightmare is happening from an investment viewpoint. You can clearly see that the correction for Litecoin is far from over. The price should be around $39 at the bottom if it wants to correct itself and this is even the case when you keep the true value in consideration. It’s said that Litecoin will be the first currency to drop from the top 10 to the bottom. You can easily connect the dots to see why Charlie Lee isn’t happy with this and the fall back can be fatal. Charlie Lee probably doesn’t want to be there with everyone pointing the finger when the whole thing does go down. There has also been a huge bearish rinsing wedge and this could result in a huge, sharp rapid drop in the price. It’s said that this could send it to prices of $30 or lower and this could cause serious issues. Such price movement could take quite some time but by the year 2020 it’s certainly a possibility.