Turbulence in the cryptocurrency market outshone any relevant Litecoin news on Wednesday morning, driving the LTC price down 8.3%.
Considering that $13.0 billion drained out of the entire market, it’s unlikely that investors were targeting Litecoin specifically. The Big Three also dropped by huge margins.
These kinds of widespread gains happen often and quickly in the crypto market. Barely a month can pass without investors getting cold feet. However, it’s important to remember that the overarching trend remains positive.
Consider this: Despite yesterday’s downward shift, Litecoin is still up 1,140% from the start of the year. The same is true across the industry. Cryptocurrencies generally advance more than they fall, leading to a well-worn pattern of “two steps forward, one step back.”
Granted, China’s ban on cryptocurrency trading had a longer-than-expected effect on LTC prices. Or to be more accurate, it scared investors more than we expected. They stayed bearish on Litecoin for much longer than any of the other top five currencies.
That bearishness broke last week, when Litecoin prices finally escaped the $50.00 level they had been trapped at. So long as prices don’t fall below that threshold, the possibility of a resurgence remains strong.
At the time of writing, the Litecoin to USD exchange rate was trading at around $55.93.
A Korean exchange called Bithumb is the most prominent exchange. It accounts for 25.65% of all trading volumes. And just behind Bithumb are GDAX and Bitfinex, two exchanges that facilitate LTC/USD trades, which account for 15.03% and 10.44%, respectively.
We expect Litecoin to regroup by the end of the week, hopefully to above $60.00. From there, the currency will likely follow the same see-saw pattern up to $90.00. If that level is reached before the end of the year, it will only increase our conviction in a $200.00 Litecoin price forecast for 2018.