Litecoin (LTC) is currently the seventh largest coin by market cap thanks to a massive adoption after Coinbase listed the coin in 2017. The price shot up from close to $50 and reached a high of $366 in December before crashing down to $108 with the rest of the market. The coin continues to be a favorite among many investors and is often seen as digital silver, Bitcoin (BTC) being the digital gold. While this may have been true six months from now, Litecoin (LTC) is rapidly starting to lose its appeal.
This does not have to do with Charlie Lee distancing itself from Litecoin (LTC) alone. The project has lost much of its potential and value as alternative technologies have already achieved what Litecoin (LTC) set out to do. The basic difference is that Litecoin (LTC) was focused on only decreasing transaction costs and increasing speed whereas other coins like Ethereum Classic (ETC), EOS (EOS) and Lisk (LSK) accomplish a lot more than that with the same promise. In addition to that, Litecoin (LTC) has always projected itself as a much needed alternative of Bitcoin (BTC). This stems from analogy coined by its founder, Charlie Lee that Bitcoin (BTC) is like a busy highway whereas Litecoin (LTC) is like a less crowded one. Even back then, it was easier to predict that this kind of logic would not hold for long and sooner or later Bitcoin (BTC) or any other cryptocurrency will accomplish just that.
The real question is when that is truly done, âWhat will be the need for Litecoin?â Some analysts believe that this is one reason why Litecoin founder, Charlie Lee is actually distancing himself from Litecoin (LTC). Another very plausible explanation is the fact that Litecoin had a way overextended rally in 2017 and the price has not corrected much as it should have.
Presently, the LTC/USD weekly logarithmic chart looks like a nightmare from an investment viewpoint. Looking at the above chart for LTC/USD, one can clearly see that the correction for Litecoin (LTC) is quite far from being over. The price should ideally form a bottom around $30 from a correction point of view as well as keeping its current true value in consideration. Litecoin (LTC) will most likely be the first coin to drop straight from top ten to outside of top twenty. Keeping all this in perspective, one can connect the dots to see why exactly Charlie Lee might be distancing himself from Litecoin (LTC). The fallback will be fatal and Charlie Lee may not want to be there for everybody to point fingers at as the price takes a hit and settles at the bottom of the channel. Even more dangerous than Litecoinâs LTC/USD chart is its LTC/BTC chart which shows a big bearish rising wedge which could result in a sharp and rapid drop in Litecoinâs price to $30 or lower. While such price movement will continue to take some time, Litecoin (LTC)âs future hinges on the moves it makes before 2020.