Litecoin (LTC) finally seems to have reached its bottom against the US Dollar (USD) as the price has stabilized just above the historical resistance of $56. The 200 EMA acts as additional support to the price can be seen on the LTC/USD chart above. The RSI for Litecoin (LTC) has now reached a critical point as it has to break out next week, either to the upside or the downside. Demarker indicator for LTC/USD shows that the price has reached rock bottom on the weekly chart and is on the verge of a price reversal from here.
Litecoin (LTC) like other non platform coins has done well during the recent capitulation wave as the price succeeded in defending against double digit losses .Currently, the price of Litecoin (LTC) is up 7% for the last 24 hours. Litecoin (LTC) like many coins is still down 85% from its previous ATH of $360. However, its future prospects look brighter as far as technical analysis is concerned. Litecoin (LTC) also has strong fundamentals but it is yet not clear if it will have a use case when Bitcoin (BTC) solves most of its problems with Lightning Network and/or similar solutions.
Charlie Lee, the creator of Litecoin (LTC) seems to have distanced himself from the project and has already sold most of his coins. However, institutional investors and family offices are gearing up to fill their bags as Litecoin (LTC) still form a major part of their portfolios. Litecoin (LTC) has been seen as digital silver of the cryptocurrency space for a long time, Bitcoin (BTC) being the digital Gold. The reason most investors find Litecoin (LTC) to be a good investment is because of its ability to be a good store of value in addition to being a spendable coin for exchange of value. Litecoin (LTC) has a total supply of 84 million coins out of which 57.9 million coins are currently available.
Litecoin (LTC) has reached the lower limit of its ascending channel against Bitcoin (BTC) as can be seen on the LTC/BTC chart above. RSI for LTC/BTC has been trading in a falling wedge since the beginning of the year and is now at a decision point to break above or below it. The DeMarket indicator for LTC/BTC has also been trading in a falling wedge, likely to break out in the days ahead. The current market conditions for LTC/BTC suggest that the price will begin a new cycle from here on out as the correction comes to an end.
The EMA alignment for LTC/BTC continues to remain bearish and the price might face short term resistance at the 200 EMA in case of a breakout. However, long term there is a lot of room for growth provided that Litecoin (LTC) justifies its market case by providing additional value other than being a store of value. The challenge for Litecoin (LTC) will be to secure its place in the market such that it continues to have a use case especially after Bitcoin (BTC) resolves most of its problems that Litecoin (LTC) set out to fix.