Litecoin (LTC) is an interesting coin, not because of its tech or team but because of its community support and the spectacular FOMO run it has been on. In the beginning of 2017, Litecoin (LTC) continued to trade near $15 but nobody wanted it. It was available on exchanges like Poloniex, Bittrex, Bitfinex and even platforms like eToro which means many had access to investing in it but nobody really wanted to. The reason back then was the same as it is today, which is the uncertain future of Litecoin (LTC).
In early 2017, nobody wanted to buy Litecoin (LTC) for $15 and even lower. The tech back then is the same as it is now. Nothing much has changed. It’s not like someone discovered a hidden gem that no one knew about 12 months back. So, what changed then? Why is Litecoin (LTC) trading above $120? One reason: Coinbase. The moment Coinbase announced that it had listed Litecoin (LTC), the price started rising insanely, day after day. A coin that nobody wanted for $15 ended up making an all time high around $335. The reasons were simple: speculation and the greed to catch the next Bitcoin (BTC).
Those who missed out on the Bitcoin (BTC) rally thought Litecoin (LTC) could be the next bandwagon so they jumped without any research or understanding of the tech or any consideration of its future prospects. First time investors with a Coinbase around who could buy Litecoin (LTC) around $15 thinking it could be the next Bitcoin (BTC) kept buying till it topped out. The fall was ugly when it rapidly dropped from $335 to $117 in a short term resulting in most of those first time investors losing money.
One difference between a good investment and a bad investment is that if you have done your research and you believe in a project or cryptocurrency and you know it has long term potential, you would not mind holding it for a long time. However, when you buy a cryptocurrency just because it is rising every other day, without any understanding or research, you are likely to lose money when things start looking bad because you will sell at the earliest opportunity. Why? You do not know enough about the project to trust it as a long term investment.
This is exactly what happened with Litecoin (LTC) in the case of many investors but sadly, it does not seem to be over yet. Litecoin (LTC) is still trading in a downtrend on the LTC/USD chart and has yet to break the strong downtrend resistance line. On the LTC/BTC chart, Litecoin (LTC) is trading in a rising wedge which most often is a bearish indicator signaling an imminent drop in price. The fundamental reasoning behind that is even simpler. Litecoin (LTC) is losing its edge every passing day as Bitcoin (BTC) works on the Lightning Network. Charlie Lee, the founder of Litecoin (LTC) has also distanced himself from the project recently. However, despite all that, the Litecoin (LTC) community still feels confident that the project will continue to stay relevant in the future.