Litecoin prices jumped 6.54% on Monday as investors shimmied past the Chinese cryptocurrency ban. It’s as if they all suffered a bout of amnesia at the same time.
One moment, the Chinese ban was front-page Litecoin news. The next, it was consigned to the dustbin of history. Will this selective memory last? That is less certain.
The Litecoin to USD exchange rate broke above $50.00 to find a level at around $51.74. The beleaguered coin also rose 2.08% against Bitcoin, suggesting that crypto funds are unfurling towards altcoins.
Bithumb, a Korean exchange, was the single largest center for trading LTC coins. It accounted for 35.7% of all trading activity, compared to GDAX and Bitfinex, two American exchanges that filled the No. 2 and No. 3 spots. They accounted for 12.77% and 9.83%, respectively.
Having these three exchanges rank as top Litecoin markets is a new phenomenon. It means that Litecoin is getting new bids from investors in these countries, thus widening its base of support.
That said, China’s two main exchanges, Huobi and OKCoin, still represent 12.11% of Litecoin’s trading volume. A lot of that money is slated to exit the market before October 31. When it does, we could see heavy pressure fall on the “sell” side of Litecoin trades.
It’s unlikely that we’ll see Litecoin prices stay as stable as they were this last week.
We believe two things:
- The storm from China’s ban is not over.
- Litecoin’s price surge shows that it can survive major storms.
Ultimately, there’s only one course of action for investors if they believe the two statements above.
They’d wait for LTC prices to dip, scoop them up at a discount, and wait for long-term forces to work their magic. They’d do this with the understanding that LTC prices can reach our $200.00 Litecoin price forecast within a year, providing them with triple-digit gains in under 12 months.