Litecoin News Update
The “chickun” is finally taking a breather from its exhausting run with the bulls. The rally in Litecoin prices is reversing and fears of a Litecoin crash are beginning to mount. Should you be scared?
It was almost certain for prices to head for consolidation after the aggressive bull run. If it’s any consolation to you, I don’t quite see a Litecoin crash happening—that is, if investors hold onto their Litecoins.
That’s the key.
For a crash to occur, the majority must unwind their positions. In which case, a precipitous drop in prices would become inevitable.
This is where the community’s slogan—“HODL”—finds its application. “Hold On for Dear Life” or be prepared to face a crash.
Litecoin investors are currently divided into two clubs: the “devotees” and the “sheep.”
The devotees are in it because they believe in the idea of a decentralized cryptocurrency eventually replacing fiat currency as a legitimate mode of payment. They are the ones who have invented the slogan and will likely adhere to it.
The sheep only jumped on the bandwagon following their neighbor as they didn’t want to miss out on his get-rich-quick investment idea. They follow the “herd mentality,” which can reverse at any moment. It is this second kind of investor that threatens Litecoin prices.
But don’t worry too much. Litecoin has already survived one crash before, when nearly all of its market value was wiped out. This was back in late 2013 and early 2014, when prices dropped nearly 90%. Yet, prices recovered in the following years as we witnessed a remarkable rally. So I don’t doubt for a second that it cannot survive once again.
Remember that cryptocurrencies are marred by risk and high volatility. They are still relatively young, and maturity will come with time. So those who hold (or HODL) for the long run will likely realize stable gains.
At this point, let me pass on a piece of advice right from Litecoin founder Charlie Lee himself: “If you can’t handle Litecoin dropping to $20.00, don’t buy.”
What’s Happening to LTC Prices Today?
At the time of writing, the Litecoin price was down about 10.69% in the past 24 hours. The average LTC to USD rate was just under $300.00. The LTC to BTC rate also dropped, but by a slightly less margin. That’s because Bitcoin prices were likewise down a little over two percent in this period.
Daily Litecoin Price Chart
Chart courtesy of TradingView.com
Average volume is, nonetheless, holding steady over $2.0 billion. American exchange GDAX remains the biggest driver of volume, followed by South Korea’s Bithumb. The two jointly made up about a third of all trades in the past 24 hours.
We’re remaining greedy as the others turn fearful, as we “HODL” on to our Litecoin price forecast of $400.00 for 2018.