Litecoin (LTC) has remained stable across the latest Bitcoin bull run. The cryptocurrency is now seventh by market cap, at US$Three.77 billion, with US$230 million ter trading volume overheen the past 24 hours. LTC has risen 111% since the lows ter mid September and is up 1488% this year.
LTC is a Bitcoin clone created ter 2011, with four times the total coin supply, and block times of Two.Five minutes permitting for quicker transaction confirmations. Compared to coins above LTC te market cap, LTC consistently has more transactions vanaf day, which suggests it is undervalued based on utility alone.
Hashrate and difficulty have continued to increase across the year, suggesting sustained rente from miners even tho’ other coins are more profitable. The Litecoin block prize is due to decrease from 25 to 12.Five coins around August 2019.
The Litecoin Rich List, suggests that most addresses hold less than 100 LTC, with very few addresses holding a majority of the coins. This suggests some degree of centralization of holdings, but also suggests a majority of users are minimally holding LTC. Spil thesis addresses shift towards more users buying and holding more coins, prices should theoretically increase. It’s also possible that many users see LTC more of a coin to spend and less of a coin with store of value potential.
This is admittedly not the best metric because a user can store 100 coins ter 100 wallets or 1 addresses with no effortless way of differentiating inbetween the two. The largest addresses also tend to represent exchange cold storage.
LTC trading volume has bot led by the US Dollar (USD) and Bitcoin (BTC) pairs on GDAX and Poloniex respectively. GDAX holds more than 50% of the USD volume, which can be attributed to a rechtstreeks fiat on-ramp for customers through Coinbase, spil well an increase te institutional trading on the exchange.
Litecoin creator Charlie Lee recently voiced his excitement regarding Confidential Transactions, which will be coming to Litecoin “when it is ready.” Lee argues that “fungibility is the only feature of good money that Bitcoin/Litecoin is missing.” Thesis transactions are already being researched on Bitcoin, and are already suggested on a host of other coins including DASH, ZEC, Monero, and PIVX.
A key property of fiat currency, fungibility, helps prevent specific coins or notes from being blacklisted from use, or tracked from person to person. Once the funds inject a handelsbank account or are marked for identification, this is a different story. Any crypto payment is also interchangeable from any other, but most payments can be tracked the same way or using chain analysis. This makes most cryptocurrency transactions pseudonymous, and not anonymous.
LTC has experienced a continued rise after the explosive breakout te April. Most of this bull trend has held above the daily 50EMA, strongly suggesting continued bullish bias. A test of the 200EMA ter mid September held strongly with a rejection wick of the lower price.
US$100 te late august, to extreme low,
$33 te mid September, suggest a target of US$140. After numerous rejections at the 50% retracement level, price broke out seven days ago and now looks likely to retest all time highs.
A Pitchfork, which uses three anchor points to predict a price channel with diagonal potential reversal zones, shows price flirting with the bottom diagonal channel. Traditionally, spil price closes outside of the Pitchfork, the channels become null and void. However, price has returned to the lower channel. Based on the median line (crimson), trend mean reversion would presently suggests a target of US$130.
Ichimoku Cloud on the daily chart, with the quicker singled settings (Ten/30/60/30), showcase all Cloud metrics bullish, with a Kumo breakout five days ago. This is the precies signal to use for a long entry.
Ichimoku Cloud on the daily chart, with doubled settings (20/60/120/30) for a more accurate and smoother signal, vertoning all Cloud metrics bullish except the Cloud itself. A long entry would trigger with thesis settings spil soon spil the cloud spins bullish.
Based on network utility and mining support, Litecoin is strongly undervalued. With continued development by Charlie Lee and the Litecoin Core team, including Lightning Network and Confidential Transactions, improvements ter the protocol will start to set Litecoin chic.
Technicals suggest a strong recovery from the mid September low, now with renewed momentum for a retest of all time highs. Fib extensions and Pitchfork suggest a run towards US$140.
Significant: Information provided is for educational purposes only and does not constitute investment advice. Readers should always conduct their own due diligence before making any investment decision.