After a Chinese ban on initial coin offerings (ICOs) came into effect earlier this week, cryptocurrency value plunged across the board. Bitcoin, Ether, Ripple, and Litecoin all took double-digit dives on Monday.
But the industry is already in recovery, with LTC prices crossing back above $80.00 at the time of writing. The resurgence suggests that investors are hewing to the long-run Litecoin price forecast as opposed to a short-term outlook.
Litecoin is up about 6.93% in the last 24 hours, roughly 21.31% in the past week, and nearly 74.55% from the previous month.
Newcomers to the cryptocurrency world might be wondering whether it was a specific piece of Litecoin news that sparked this rally. The truth is, there wasn’t.
To be sure, Litecoin’s implementation of SegWit on May 10 was certainly a catalyst, as was its expeditious implementation of the “Lightning Network.” But the overall optimism seems to derive from Litecoin’s position as the “silver to Bitcoin’s gold.”
Litecoin founder Charlie Lee put it a little more diplomatically when he said, “Litecoin will provide a niche where it will be more used for payment, whereas bitcoin will be more used for storing.”
As for whether or not the rally will continue, that depends on Litecoin’s ability to maintain its technological edge. It will need faster transaction speeds, a broader network, and more miners if it is to succeed.
We are slightly concerned that the development of a Bitcoin micropayments network (like Kim Dotcom’s Bitcache) might disrupt Litecoin’s momentum. It is imperative that Litecoin become the practical alternative to Bitcoin, or else its value will crumble from within.
However, those fears are not yet significant enough to impact our Litecoin price forecast, which still shows the cryptocurrency ascending to $200.00 by 2018.