The cryptocurrency Litecoin (LTC) has seen a slight decrease in its price over the past few days, trading at around $94. This follows a period of growth that saw it reach as high as $98.50. The recent pullback corresponds with a larger downward trend amongst crypto assets, as investors reacted to positive US economic data.
The pullback was further compounded by the inability of LTC to break out of an uptrend that began in November. This caused a technical selloff, and the 50-day moving average of $93 may offer some support.
Despite the recent downturn, Litecoin has been gaining traction as a mainstream payment option. According to a report from CoinGate.com, LTC payments comprise 9.5% of all crypto payments made through their merchants. This is impressive considering the coin has a total market capitalization of only $6.8 billion, compared to the market’s total of $1.06 trillion.
Price Prediction – What Can We Expect?
In the near term, it is likely that LTC will test the recent lows of $88-$90. This is due to it being difficult to breach the $100 mark again. However, if the wider crypto market can maintain its calm and gradually rise, Litecoin is a good contender to continue performing well. This is due to its increasing use as a medium of exchange, as well as its strong technical indicators.
These factors could eventually help it break the psychological level of $100. If this happens, it could potentially propel it to the $120 region.
Litecoin has been gaining a lot of attention in recent weeks, with the cryptocurrency’s recently secured partnership with Mastercard and the deployment of its latest version of the Ordinal non-fungible token (NFT) protocol. According to a tweet from the Litecoin Foundation, 20,000 Litecoin Ordinals were inscripted onto Litecoin’s blockchain within the space of just three days.
In addition, authorities in the UK might be some of the main beneficiaries of the anticipated surge in crypto markets. Hong Kong will be opening its market to retail traders this month, and according to a tweet from the official Litecoin account, retail cryptocurrencies “must be classified on at least two of five indices for Hong Kong’s SFC approval”. “Only 4 cryptos have four or more, one of which is Litecoin”.
In the long-term, Litecoin could continue to climb higher than it did last November when it briefly fell below $50. Bulls will be targeting the February Highs of around $106, highs from last March in the $130s, and a key long-term support-turned-resistance zone in the low $140s.
Traders looking to make quick profits might be interested in other high-potential tokens such as those that are being sold pre-sale and promising future crypto projects. Cryptonews has complied a list of the top 15 cryptocurrency for 2023, which is updated every week with new altcoins or ICO projects.