The Litecoin to USD exchange rate rose 10.31% on Friday morning, bringing the currency to a month-long high of $59.63. Then, after scoring another 6.3% gain on the weekend, Litecoin prices reached $63.37.
The last time they traded that high was September 12.
By now, most of you are familiar with what happened, but let me fill in the blanks for the few that are new to the story.
Litecoin was trading at record highs at the start of September. Investors were making money hand over fist. But then China ended cryptocurrency trading without any warning, and just like that, major Litecoin exchanges were put out of business.
It was massively shocking Litecoin news.
LTC prices went into freefall, hitting fresh bottoms almost daily. But the entire crypto market started to recover at the end of the month, led, of course, by Bitcoin.
For the next few weeks, Litecoin’s price increased in dribs and drabs, while Bitcoin accelerated at an almost comical pace. BTC dominance—a measure of concentration in Bitcoin—reached as high as 56.5%.
To put that in perspective, it spent most of the summer under 48%. But just as the distance widened between Bitcoin and Litecoin, we hit an inflection point.
Litecoin prices took flight suddenly last week, leaving behind the $50.00 threshold. In fact, the spontaneous movement carried Litecoin past $60.00 as well. Meanwhile, in the background, BTC dominance dropped to 53.9%.
It’s no surprise that the currency is up 23% in a single week. But the question that matters now is: What happens next?
Daily Litecoin Chart
Our expectation is that Litecoin will mimic Bitcoin’s price pattern over the last few weeks. Why? Because investors are obsessed with the idea that LTC is the “silver to Bitcoin’s gold.” They will not let the two cryptocurrencies remain out of swing forever. Therefore, one has to follow the other’s rally. The unwinding of BTC dominance will feed this trend, lending fresh support to our $200.00 Litecoin price forecast for 2018.