Thank the Lord, Litecoin prices are in green font once more! It’s only one day of gains, but investors are desperate for Litecoin news after the Chinese ban on cryptocurrency exchanges.
Here’s what they should look at.
Litecoin’s inflows are coming from an entirely different source than before. Chinese exchanges like Huobi and OKCoin were contributing more than 30% of trading volumes for a while, but Chinese regulators demanded they suspend Litecoin to yuan trading by the end of next month. This caused a massive drop in Litecoin prices.
LTC fell to approximately $34.00 from a high of $91.00, marking a fall of epic proportions. However, the price quickly doubled back to the high $40.00s, where it will presumably gather strength for another rally.
The strength of Litecoin trading is now coming mainly from South Korea and the United States.
Bithumb, an exchange in South Korea, accounts for 17.44% of trading activity, while two U.S. exchanges, Bitfinex and GDAX, account for a combined total of 23.31%.
The loss of Chinese volume does mean that overall trading volumes took a hit, but at least the momentum is on the bid side of the trade. When Chinese investors were rushing to exit the market, there was tremendous pressure on the ask side of the trade.
In any case, the Litecoin to USD exchange rate increased 1.84% to reach a level of near $48.69.
Although we expect several more shocks from now till October 31 (when Chinese exchanges will officially cease Litecoin to yuan trading), the emergence of U.S. trading volumes is encouraging.
If their support continues with relative consistency, we could see our $200.00 Litecoin price forecast come to fruition earlier than expected.