LTC prices are back down to near $64.31 and the culprit is quite obvious: reduced trading from South Korean exchanges. That was the pivotal piece of Litecoin news this week (because China’s crackdown on initial coin offerings applies more to decentralized application blockchains like Ethereum).
We wrote in our previous Litecoin price forecast that heightened trading volume from Korean exchanges was powering the LTC boom. We also said that sustained volume would be required in order for LTC prices to continue their skyward climb.
However, that did not happen. Korean traders cooled on LTC tokens, leading Bithumb—the biggest Korean exchange—to drop to second on the list of most active Litecoin exchanges.
As of writing, the most active exchange is OKCoin.cn. It is a Chinese exchange that makes up 22.5% of total volume.
The dropoff in Korean interest caused LTC prices to fall roughly 3.92% against the U.S. dollar and about 3.05% against Bitcoin. Can this trend correct in the coming week? It depends.
Litecoin is widely considered “the silver to Bitcoin’s gold,” meaning that its fortunes are tied to the cryptocurrency frontrunner. On the whole, that relationship should bode well for Litecoin, because it means that it will serve in commercial purposes while Bitcoin acts as a store of value.
However, if Bitcoin is able to manifest a working micropayments system, it could usurp Litecoin’s place in commercial operations. That risk is the disaster scenario for Litecoin prices.
Thankfully for LTC investors, its disaster scenario is nowhere close to coming true. Litecoin is one step ahead of Bitcoin with its early implementation of SegWit and the “Lightning Network.”
It would take an eleventh-hour miracle for Bitcoin to close the gap. Since that possibility is minuscule, we should consider that LTC will indeed reach our 2018 Litecoin price forecast of $200.00.