Litecoin (LTC) trading volumes took a dive this past week, adding another link to the chain of evidence that Bitcoin (BTC) is sucking up all the air in cryptocurrencies.
Only $81.1 million worth of LTC tokens changed hands on October 26. Compare that to two weeks ago, when $453.9 million worth of Litecoin was traded in a single day.
The drop-off in trading activity made it hard for investors to find a bid, which in turn caused LTC prices to stall around the $55.00 level. Momentum was virtually nonexistent.
As a result, investors looking to make a profit in this environment have only two options:
- Trade the swings, or
- Hold and wait.
Of the two options, the former is riskiest. It takes ungodly skill to short cryptocurrencies, especially given the amount of money needed to cover the trade. The latter is much more sensible.
You don’t have to look far to realize this. Consider that Litecoin appreciated 1,176% this year alone, irrespective of China’s ban on cryptocurrencies. To be sure, that ban caused a crash in LTC, but it was not nearly enough to erase the currency’s long-term trajectory.
If anything, the crash brought Litecoin to the attention of U.S. and South Korean investors.
It’s no coincidence that Bithumb, an exchange that deals in LTC/KRW trades, is now the most prominent exchange for LTC. It is followed closely by GDAX and Bitfinex, both which deal in LTC/USD trades.
Put another way, Litecoin has discovered a new investor base this year. So, does it matter that the Litecoin-to-USD exchange rate fell 2.18% to $55.22?
It doesn’t take a genius to realize that Litecoin is in the doldrums. That’s not exactly banner Litecoin news. But by definition, it should imply that Litecoin is undervalued. We estimate that LTC will accelerate to $90.00 before Bitcoin’s next hard fork, and then to our $200.00 Litecoin price forecast in 2018.