Litecoin (LTC) Continues To Show Weakness, Pullback To Lower Levels Likely

Litecoin (LTC) is one of the very few altcoins to have broken market structure during the recent correction. This is probably because of its artificial growth last year compared to the rest of the market. Litecoin (LTC) benefited from FOMO and hype which pushed the price to an all time high of $360. This was surprising for most crypto investors considering the price shot up from $10 to $360 in such a short span. It was even more surprising when you consider that nothing much had changed fundamentally. If anything, the prospects of Litecoin (LTC) keep aggravating with each passing day as Bitcoin (BTC) becomes more and more advanced to address the very problems that Litecoin (LTC) set out to solve. This explains what happens when a coin is hyped up just because it has a low price and some investors falsely believe that it could become the next Bitcoin (BTC). Charlie Lee, the founder of Litecoin (LTC) sold all of his coins at the top of the bull run near the ATH of $360. He later tweeted that he regretted doing that. Charlie Lee has currently distanced himself from the Litecoin (LTC) project and holds no Litecoin (LTC). He claims that is because he wants to dissociate himself from the project so that it can grow independently in a decentralized manner. However, critics argue that Charlie Lee is only doing this because he knows that once Bitcoin (BTC) starts addressing the problems of cheap and faster transactions with Lightning Network, Litecoin (LTC) will not have anything to sell. So, the project could technically become useless because there will be no need to use Litecoin (LTC) for anything. One could argue the same about other small cap coins with cheaper and faster transactions than Bitcoin (BTC), but there is a difference. The purpose of Litecoin (LTC) is to serve only as a medium of transaction between different parties. It is not a smart contracts platform and Dapps cannot be built on it. As for most of the other small cap coins with a better transaction speed and lower costs, they are also smart contracts platforms with their own specific use cases. In other words, their primary purpose is not to compete with Bitcoin (BTC) as a medium of value exchange but they are trying to address distinct problems in different industries with the use of blockchain. So, they have a purpose other than being fast and cheap. The same cannot be said about Litecoin (LTC). Regardless of the use cases and future standing of Litecoin (LTC), investors still seem to take a liking to this coin. Maybe that is because they believe that Litecoin (LTC) will continue to have a future and Bitcoin (BTC) might not be able to become as cheap and fast as the network traffic increases. Even some institutional investors hold Litecoin (LTC) in high regard. Currently, the price of Litecoin (LTC) is trading weakly against both US Dollar (USD) and Bitcoin (BTC). The price is likely to test the bottom of the channel on both LTC/USD and BTC/USD in the weeks ahead.