Litecoin Tanks, Yet May Soon See Bounce
Mere weeks ago, Litecoin (LTC) underwent its latest block reward reduction — also known as a “halving” or “halvening”. While many expected for this to kick off the cryptocurrency’s next surge, it didn’t. In fact. the popular altcoin plunged after the halving, falling from three digits to $64, where LTC sits today.
This corroborates a report from Strix Leviathan, a Seattle-based crypto startup, which found earlier this year that crypto assets that see their emission halve “outperform the broader market in the months leading up to and following a reduction in miner rewards.”
Litecoin may soon see a bounce, however. Analyst CL recently pointed out that Litecoin recently dropped to its 50-week moving average, which has acted as both a level of support and resistance. As he/she points out, the “last time LTC stopped dumping after the halving was at the weekly 50 moving average; it was also a local Bitcoin bottom.”
Should history repeat, Litecoin should bounce in the coming weeks, potentially to flatline or to surge higher.
The fundamentals support this. The recent sell-off in the cryptocurrency has been accentuated by FUD being mounted against Litecoin, which its critics say is a dead project without a technological future. But, Litecoin creator Charlie Lee and members of the Litecoin Foundation have assured the community by pointing towards some of the project’s other accomplishments: crypto payments startup Flexa supporting LTC for payments in Whole Foods, Nordstrom, etc.; and the NFL’s Miami Dolphins adopting the project as their team’s official cryptocurrency.
Altcoins Ready to Run?
Not only is Litecoin’s prospects looking up, but that of altcoins as a class too.
At the start of the last altseason, Bitcoin dominance was around 70%; now, Bitcoin dominance is sitting pretty at 69.1%. According to a recent tweet from Bitcoin Birch, a founder at crypto startup Lunar, the last time this key metric flirted with this round level, the biggest altseason in history was kicked off shortly after, when BTC fell off a cliff relative to altcoins.
Indeed, in March began a sharp downtrend in Bitcoin dominance, which ended when the figure hit some 32% in early-2018. Youch.
There’s no saying that the same will happen again. But, there are other signs pointing towards an impending resurgence for altcoins — or at least a lull in the bloodbath.
Adaptive Capital partner and analyst Willy Woo believes that altcoins may soon find some support against Bitcoin. He posted the below image on Twitter, which shows that the altcoin capitalization-to-Bitcoin capitalization ratio and the altcoin market volume-to-Bitcoin market volume indicators are currently “heading into a region of support.”
Title Image Courtesy of Marco Verch Via Flickr