Daily Litecoin News Update
We identify a pattern developing in crypto prices as crypto markets recover on Friday after a two-day slump. Prices seem to be following a routine here, whereby prices drop around mid-week and then begin to reverse their fall toward the end of the week. Later, a splendid rally follows on the weekends.
This is how far we have managed to predict prices in this space because, let’s be honest, cryptos are otherwise acutely capricious investments sporting high volatility and nearly absolute unpredictability. This is because investor sentiments, and not investment fundamentals, drive prices in this space.
Take the example of Litecoin, which has turned out to be a better-performing crypto this month than heavyweights Bitcoin and Ethereum. But from where we see it, this has had little to with its improving fundamentals.
Litecoin price has been surging on the back of one speculation—that is, Litecoin prices will skyrocket following the launch of “LitePay.”
Chart courtesy of TradingView.com
Although I’ve been bullish on LitePay and have called it a “game-changer” for Litecoin, I’m feeling dubious about the sudden price surge. Having seen umpteen pump-and-dump cases, the fear of a Litecoin price crash following LitePay’s launch is perhaps duly justified at this point.
In my humble opinion, the odds of a momentary price drop right after the launch are seemingly high.
At this point, I’m reminded of Litecoin founder Charlie Lee’s wise remarks, which he delivered a month ago when Litecoin owners faced a similar possibility of an LTC crash.
Lee explained investor psychology in these words:
He called it a self-fulfilling prophecy and we fully subscribe to his apt definition of jumpy investor behavior.
So, should you face a situation like this—the probability of which seems high right now—do not fret about it because prices may consolidate soon afterward. We’ve seen far too many similar instances in the past and every time, prices have retraced their steps up north.
Take heed of Lee’s advice. That is, “HODL is the best move to ride this out.”
LitePay is due to be released on Monday, February 26, after which prices may take an unexpected swing. At this point, it can’t be said with full conviction which way this swing will be.
There’s a good chance that speculators who’ve moved in to make a quick buck will head for the exits following the release. Investors must, however, believe in the power of HODL, because Litecoin’s true value will be unlocked once LitePay is rolled out to the 41 new world markets.
This is why we hold steadfast in our Litecoin price forecast for 2018, maintaining an LTC price target of $400.00.