Daily Litecoin News Update
Litecoin prices have posted a stunning rally over the past two days. Those of you who did not heed our advice to “hold on for dear life” (HODL) may be kicking yourselves right now. Cryptocurrency markets are indeed recovering from the crash, as we had expected, and Litecoin is once again on track to reach our price target for 2018.
In case you were disconnected from the crypto world through these hours of price resurgence, here’s what went down.
- The South Korean government dialed back its strict tone on cryptos in response to a public petition. A senior official confirmed that a ban is not in the cards, at least for now.
- The president of the European Central Bank (ECB), Mario Draghi, said the ECB is not banning cryptos, simply because it’s not his job.
So, South Korean and European crypto investors may be back in action as the air of uncertainty dissipates. This explains the revival in investor spirits, as is obvious from the marketwide rise in prices. Not just for Litecoin; all of the top cryptocurrencies have been trading in green.
Chart courtesy of TradingView.com
But Litecoin’s price reversal, in particular, has been dazzling. The LTC to USD rate is up another 13% since yesterday. There’s certainly more to it than just macro tailwinds. If you’ve been following our updates, we have pointed out two key events due to take place later this month that are driving the frenzied buying.
Take note of the following two dates.
- February 19: The day Litecoin is expected to get hard-forked.
- February 26: The day LitePay is expected to be launched.
Heads up for those who haven’t been keeping on top of things: a team of anonymous developers is hard-forking Litecoin to create Litecoin Cash later this month.
Litecoin founder Charlie Lee has explicitly warned investors to consider Litecoin Cash a scam. But some may not be paying heed to Lee’s advice, and will take the bait.
This team of anonymous developers has promised to “airdrop” Litecoin Cash coins in the ratio of 10:1 to LTC owners. Simply put, for every Litecoin you own, you may be eligible to get 10 free Litecoin Cash coins, presumably if you move your wallet as per the directions.
From where we see it, part of the price move may be attributable to the greedy speculators who are sold on this drool-worthy, yet scammy, prospect.
But for the most part, the price surge is attributed to mounting investor anticipation as we approach the launch of LitePay Inc., the most dearly awaited payment processing service that promises to take Litecoin mainstream. We have been counting the days to its launch and have been predicting a move in prices.
Regardless of the reason you assign to the current cryptocurrency price rally, the pace at which prices have moved over the past two days seems dubious. Steep price surges are usually followed by free falls in this space, so we remain cautious in the short term.
Nonetheless, our long-term Litecoin price forecast remains on track as we foresee Litecoin prices hitting the $400.00 mark later this year.