Cryptocurrency Price Prediction; Litecoin, Leading The Rebound

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Contents

Litecoin price prediction 2020: can it become the best-performing altcoin of the coming decade

Only 10 years ago, no one knew what a blockchain was. Today, there are hundreds of well-established and emerging cryptocurrencies using blockchain technology to supplant traditional fiat money and change the way we live.

Litecoin (LTC) has drawn a lot of investor interest after hitting the headlines in December 2020. Then, the cryptocurrency reached its record high of $375, an 8,200 per cent increase year-on-year, hitting a total LTC market cap of $19.5 billion.

However, following the latest crypto market news where prices have fallen across the board, many now wonder: will Litecoin go up once again? Can it fully recover and set some new records after the bumpy ride of the second half of 2020?

While this year is about to come to an end, closing the first decade of crypto’s existence, analysts are split in their Litecoin price predictions. Some experts say that its current all-time high could be just a drop in the bucket and predict the coin to hit an overwhelming $595 by 2030. Others take a bearish stance, believing that another crypto winter is yet to come, with Litecoin future price dropping as low as $1.5 by the end of 2024.

So, if you are wondering, “should I invest in Litecoin or not?” we have you covered. In this article, we try to find the truth by taking a closer look at what factors influence this cryptocurrency, reviewing its recent performance, analysing the latest developments and checking out the Litecoin price prediction for 2020 and beyond.

The very basics: what is Litecoin?

Before we delve deep into the Litecoin price predictions, let’s do a quick review on what LTC is.

On October 7, 2020, Litecoin (LTC) was created by Charlie Lee, an ex-Google employee and former Engineering Director at Coinbase. Designed as a peer-to-peer network with the same-name native cryptocurrency, it was launched to complement Bitcoin by solving issues like concentrated mining pools and transaction timings, as well as to make the crypto world more accessible.

Truth be told, these two do share a lot in common. However, there are still some substantial advantages that Litecoin boasts of. These include, among others, improved capacity, faster block generation and higher supply limits.

On the other hand, as Litecoin’s purpose initially was to be “silver” to Bitcoin “gold”, some sceptics call into question whether it will ever be able to become anything more than its main rival. While Litecoin technically has a superior algorithm, it may be rather irrelevant since Bitcoin’s popularity has cemented it as the gold standard for old and new crypto traders. Moreover, the next-gen altcoins are emerging almost daily, taking the industry’s competition to a whole other level.

Litecoin price analysis: the rise and fall of the alt-legend

After its launch, Litecoin was fast to get the attention of the small yet growing crypto community of the time. Nonetheless, its value had remained rather low – around $3 – for quite a long time. It was only in November 2020 when the market finally saw the first significant price movements. On November 28, LTC value almost doubled within one day and reached the price of $50 per coin.

However, such a substantial jump was short-lived. In April 2020, Litecoin dropped to $10 and further to a little over $1 in February 2020. The crypto was then traded in the range of $1-$4 for the next two years.

In March 2020, Litecoin announced the launch date of their Segregated Witness (SegWit) protocol upgrade. The statement had a positive impact on the coin’s rate, with its value rising to $16. In May, the protocol changes were finally implemented, making LTC the first of the top five cryptocurrencies to adopt SegWit and pushing its price to $30.

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Meanwhile, the dev team implemented the Lightning Network, attracting a lot of attention from the crypto enthusiasts. By September, LTC reached $70. With the whole market being bullish, sending Bitcoin and altcoins to set new price records, Litecoin hit its all-time high of $375 in mid-December.

For the most part of 2020, Litecoin was in a bearish trend. Despite its well-established position in the industry, the coin was affected by the overall descending dynamic of the market. The downward Litecoin trend only changed a couple of times: in February and April. All-in-all, the coin’s price decreased almost five times over the course of the year.

At the beginning of 2020, Litecoin continued its price growth. During the first half of the year, LTC price increased four times from $31.02 to $138.4. The reason for such a significant price hike was the upcoming Litecoin halving, which happened on August 5.

However, the event was followed by the much-expected correction, with the price of Litecoin dropping as low as $68 by mid-September. Throughout the rest of the year, the coin remained in the downward trend. At the time of writing, on December 20, LTC traded at $40.

What can determine Litecoin future price: does LTC stand a chance?

Back in the days, Litecoin was at the forefront of modern and relevant technologies. Its early implementation of SegWit protocol and Atomic swaps has revolutionised the sphere of the cryptocurrency payments.

However, Litecoin has been recently struggling with many difficulties. Now that Bitcoin also introduced SegWit, the altcoin lacks one of its crucial competitive advantages.

Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, said: “Litecoin’s price action has historically followed Bitcoin’s, but currently it is facing negativity on multiple fronts. In the absence of new capital flow, transaction volumes have remained tame and the August halving has failed to push the price higher.”

He also added: “In fact, miners have begun to abandon the network after the reward-reduction, which is why the hashrate is falling and concerns are being raised about the network’s security.”

Marouane Garcon, managing director of crypto-to-crypto derivatives platform Amulet, also weighed in, saying that Litecoin’s recent price decline “has more to do with the concerns about development and how they are going to be funded going forward.”

Earlier this year, Charlie Lee reportedly told Franklyn Richards, director of Litecoin Foundation, that “no one is interested in working on Litecoin protocol development work.” After this information was disclosed, “people’s perspective of Litecoin changed,” continued Garcon. “Litecoin has not been the same since that announcement,” he added.

Based on the latest study conducted by Sylvain Saurel, the potential of Litecoin is very limited. He explained that the coin peaked in 2020 as it was riding on Bitcoin’s wave of success, taking advantage of the increasing number of interested investors. Although Litecoin remains in the top 10 cryptocurrencies by market cap, this number is still too far from its record high of $19 billion.

Saurel claims: “Litecoin will certainly remain in the top 10 of cryptocurrencies for some time to come, but its future is clearly not alongside Bitcoin that could revolutionise the monetary and financial system in the future.”

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Litecoin has reported a decrease in its hashrate since mid-2020, reaching its lowest levels since 2020.

At the time of writing, its hashrate was 147.4 TH/s. If the fall is prolonged, it could negatively affect the future performance of Litecoin.

However, it is important to note that the network is now working on some major changes. According to the latest news, the Litecoin Foundation is currently cooperating with Steve Burkett, a developer of the Grin project, to implement MimbleWible in the Litecoin protocol. Once realised, Litecoin could move away from Bitcoin, creating a unique selling point. On the other hand, innovation will reduce fungibility, possibly making Litecoin susceptible to being blocked from important exchanges.

All in all, Litecoin has a great advantage to make improvements to itself much faster than Bitcoin does. However, with the rapid development of new crypto projects that have base codes that are already more fit for micro-transactions and scaling, has Litecoin missed its chance to stay on top?

Litecoin price prediction 2020 and beyond: what to expect in the following decade

It is no secret that the crypto market moves at a rapid pace, making it rather difficult to predict its future. We have made our own investigation to compile a list of the latest Litecoin forecasts from various sources.

Based on technical analysis, TradingBeasts.com, a popular crypto forecast website, predicted that by the end of next year, LTC price will be around $46.23; and only a bit higher in 2021 – up to $67.23. By December 2022, Litecoin is expected to grow to an average of $82.68.

A more optimistic LTC price forecast is provided by Cryptoground.com. Based on an internal deep learning algorithm, it states that LTC will reach $88.30 in one year, rising almost 109.81 per cent. It is expected that the growth will continue, with the coin trading at $347.8 by the end of 2024.

According to the information provided by CoinFan.com, another famous online forecasting service, Litecoin future predictions look rather promising, with LTC prognosed to end 2020 at $276.4. Their long-term forecast suggests the coin will hit $506.8 by May 2025.

George Tung, a cryptocurrency analyst, has the most positive Litecoin projections, saying its price might rise as high as $1,500 towards the end of 2020.

Looking forward, DigitalCoinPrice.com states that Litecoin will have moderate price growth. The positive trend is expected to prevail, with the coin trading at $72 in December 2026.

Regarding the Litecoin price prediction 2030, the coin is expected to end the following decade at $251.44, according to CoinPriceForecast.com.

However, not everyone has taken a bullish stance. Walletinvestor.com, known for their pragmatic forecasts, refers to LTC as a “bad, high-risk one-year investment option.” According to their Litecoin predictions, the coin is expected to lose in value significantly, with its price falling to $4.5 by August 2020. However, it is expected to recover by fall and end next year at $36.8.

In five years, Wallet Investor estimates the coin to drop as low as $0.77 by the end of 2024.

The bottom line: is it worth investing in Litecoin?

The crypto market has experienced several ups and downs over this year. While all the talks revolve around digital money, there are still many questions to answer.

Will Litecoin rise and live up to the expectations of analysts? As you can understand, there is no definite answer to this question. It is very difficult to predict what the price of Litecoin could be in a few hours; and even harder to give long-term estimates. However, according to the forecasts mentioned above, LTC is mainly prognosed to move in a positive direction.

Is Litecoin a good investment for the long term? Well, many crypto enthusiasts believe that the project has the technological strengths that could help it to become even more popular in the crypto world.

When choosing what cryptocurrency to invest in, it is always crucial to consider the latest technical analysis, expert opinion and market trends. For that, we recommend you do as much research as possible.

If you think you are not ready to make long-term investment commitments, but still want to try to profit from the market volatility, you can do so through contracts for difference (CFD).

You can learn more about CFD trading with free online courses and find out how to trade Litecoin CFDs by reading our comprehensive guide. Always stay on top of the Litecoin latest news with Capital.com.

So, what do you think about the future of this digital coin? Will Litecoin go down or soar to hit new record highs? Do you have an LTC price prediction of your own?

Follow our live LTC/USD chart and make your own bets!

Litecoin Price Prediction: 2020 (LTC/USD Falls)

Litecoin is the “digital silver” of cryptocurrency—or at least that’s what we’ve heard. It modeled after Bitcoin—”digital gold”—but with an amended Proof-of-Work consensus algorithm.

In addition, the Litecoin Foundation has engaged in numerous partnerships and sponsorships to promote the cryptocurrency. Members have even discussed integrating the Mimblewimble Privacy protocol into the coin. This would cause massive differentiation from Bitcoin .

What the future holds for Litecoin may not entirely be clear, but its price has been steadily increasing since Dec 2020.

Will these gains hold or is a crash going to bring the price of Litecoin back to previous lows?

Regular Price Analysis Of Litecoin (LTC)

At BeInCrypto, we offer regular price analyses and predictions of the most popular and relevant cryptoassets. We completed a March analysis of Bitcoin’s price predictions, which can be found here. In addition, we predicted prices throughout April here. Below is a summary of our most recent short-term price analysis and predictions for Bitcoin published on Apr 11, 2020:

In our most recent Litecoin analysis, LTC/USD was trading inside a symmetrical triangle. It broke down on Apr 11, and it is currently trading close to the support area we have outlined below.

Based on our analysis, the price is likely to keep decreasing and eventually reach the support area at $72.

Oh Look, There’s More

Fundamental Analysis

Litecoin (LTC) is a peer-to-peer digital currency and open-source software project which designed after Bitcoin (BTC).

. In fact, if bitcoin is ‘digital gold,’ Litecoin fashions itself as ‘digital silver’ — and largely piggybacks on everything Bitcoin does. This fact is both Litecoin’s greatest strength and its greatest weakness.

Privacy Coin?

In late Jan and early Feb 2020, members of the Litecoin Foundation made statements about adding enhanced privacy features to LTC. First, Charlie Lee announced his intention to add confidential transactions to the LTC blockchain on Jan 28, 2020. Franklyn Richards furthered the discussion and added that the Foundation was looking to integrate the Mimblewimble protocol into LTC using a soft fork.

Mimblewimble integrates both confidential transaction and CoinJoin innovations to encrypt transaction amounts and their sources. It enables the buyer and seller to remain more anonymous. If Mimblewimble were integrated, the fungibility, privacy, and scalability of LTC could greatly increase while avoiding the contentions of a hard fork. Furthermore, it would add significant market differentiation to the cryptocurrency. Currently, Beam (BEAM) and Grin (GRIN) are the only two coins to use Mimbelwimble.

Halving

In Aug 2020, LTC is expected to undergo its second halving. This means that the miner’s reward will be cut in half from 25 litecoins to just 12.5. This could disincentivize miners to continue mining. In order for miners to continue earning at their current rate, the value of LTC will have to double or transaction fees must significantly increase. An increase in transaction fees may disincentivize the use of LTC. The building of sponsorships and partnerships with organizations like TokenPay, Ultimate Fighting Championship (UFC), Mammoth Film Festival, and others may, however, increase the value of LTC and, thus, the miner’s reward.”

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SegWit

Like its big brother, Bitcoin, Litecoin supports the soft-fork change in transaction format called Segregated Witness — more commonly known as Segwit. The upgrade continues to become more widely adopted as time progresses, and is an example of how Litecoin benefits from having the same core technology like Bitcoin.

Lightning Network

Just as Litecoin supports Segwit, it also supports the highly-anticipated second-layer payment protocol called The Lightning Network.

The Lightning Network plans to enable lightning-fast micropayments between participating nodes and is quickly becoming a viable solution to Bitcoin’s scaleability concerns — at least for small payments. The Lightning Network is less notably connected to Litecoin, but it is important to note that a successful Lightning Network is not only good for BTC but also LTC.

Exchanges & Wallets

Litecoin (LTC) is exchanged on virtually every cryptocurrency exchange under the sun, and cryptocurrency traders would be hard-pressed to find a reliable exchange which doesn’t support the seventh-ranked cryptocurrency.

Litecoin’s current 24-hour trading volume across tracked exchanges is $375,810,001 USD, according to CoinMarketCap.com.

Litecoin can be stored on most of the most popular hardware wallets, including the CoolWallet S, Opendime, Ledger Nano S, Trezor, KeepKey, and BitBox.

Investors, traders, and hodlers of Litecoin should have no problem finding storing solutions and trading platforms for their LTC.

Charlie Lee Cashed Out At The Top

Litecoin was created by former Google (NASDAQ: GOOGL ) and Coinbase employee Charlie Lee.

Lee famously sold all of his Litecoin at the very top of the cryptocurrency bubble, when LTC was at its all-time high. The creator cited a conflict of interest as the primary reason for selling his stockpile of the cryptocurrency.

Not everyone is convinced that Lee sold his Litecoins for benevolent reasons — especially given the fact that he sold at the very top and undoubtedly earned a sizeable profit.

Prominent silver bull and YouTuber ‘TruthNever Told’ believes Charlie Lee’s Litecoin sale was little more than cashing out of a Ponzi scheme, in which the creator created a rip-off of Bitcoin with no intrinsic value, convinced investors that it was valuable, and then cashed out at the top. While his argument is persuasive, it is worth noting that the YouTuber in question believes all cryptocurrencies are effectively worthless — and thus his opinion should probably not be factored in too seriously when discussing price predictions and forecasts.

LitePay Failure

In February 2020, Litecoin (LTC) experienced a strong pump off the news that LitePay — a credit card-like LTC payment solution for vendors — would accelerate adoption of the cryptocurrency in the retail sector.

Those hoping to easily use their LTC at retail vendors were sadly disappointed, however, when the project shut down only one month later. LitePay CEO Kenneth Asare shut down all operations and made preparations to sell the company at the end of March. Since then, the project has gone entirely dormant. At the time of this writing, the official LitePay website displays a simple logo and nothing else.

Charlie Lee himself apologized for hyping up the project. Though mistakes happen and it was good of Lee to apologize, BeInCrypto believes this instance further damaged the creator’s reputation.

LitePay serves as an example of why investors should not buy into the hype and conduct their own due diligence on hype-related developments connected to altcoins.

Bitcoin Is Better?

Perhaps the biggest problem for Litecoin is the fact that Bitcoin still has a much larger market cap and price. Because Litecoin designed itself after Bitcoin, it will have difficulty competing unless it can successfully display differentiation. Furthermore, the differences offered must be desired by end users.

Of course, Litecoin was never designed to compete with Bitcoin. Both coins can exist together. They may develop different uses and audiences. Both could be integrated into distinct industries or communities as currency while another is integrated into other industries and communities.

The lower price tag of one litecoin versus one bitcoin is also somewhat enticing. For the price of one bitcoin, an individual could buy around 70-80 litecoins. In the long-term, should cryptocurrencies succeed to the point where it is legitimately difficult to get ahold of Bitcoins, Litecoin may see success in the retail sector as a more effective means of payment.

In essence, Litecoin could become a more effective cryptocurrency than Bitcoin — but this is uncertain.

Technical Analysis

On Nov 28, 2020, Litecoin reached a high of $55. A sharp decrease followed and led to new lows in mid-January 2020 of $1.10.

Price rebounded. Within six months, highs of nearly $8.96 were reached.

By early September, prices had dropped. For around two years, LTC traded between $3-$5 before rapid price spikes in late 2020 brought LTC to highs of over $370 in mid-December.

Price has been on a downtrend since. LTC bottomed out on Dec 7, 2020 at $22.50.

Relevant upward trends are listed below with the lows and highs experienced at the respective beginning and end of each:

It appears as if we are in the midst of a third significant upward trend based on the significant price increases since the bottom on Dec 7, 2020.

In this analysis, we will predict the date in which the price and date of the next peak. Furthermore, we will assess Litecoin’s potential price at the end of 2020 and 2020 respectively.

RSI Similarities

To begin, we seek to isolate similarities between these upward trends within the technical indicators. To begin, we examine the similarly low relative strength index (RSI) ratings during each bottom.

The price of LTC on Bitfinex is analyzed at weekly intervals from Jul 2020 to Mar 2020 alongside RSI in order to figure out where our current position is relative to the 2020 correction:

To better visualize large price fluctuations, logarithmic charts are going to be used in this analysis.

The lowest RSI recorded during the 2020 correction was 29. This occurred on the weekly candle for the week of Jan 12-Jan 19, 2020. The $1.10 bottom was also reached during this period.

Similarly, an RSI of 29 was reached during the week of Dec 3-Dec 10, 2020. The $22.50 bottom was reached during this period as well.

This may suggest that RSI may reach similarly low levels of under 30 shortly before LTC bottoms out after a longterm downtrend.

Therefore, we may have the first similarity between the two bottoms: Oversold RSI values( Litecoin Resistance

Now we examine similarities between the 2020 and 2020 corrections based on this data:

2020 Correction

On Sep 15, 2020, the price reached a low of $32.40. After 61 days, the price reached a high of $370.70. A sharp decrease ensued, followed by a gradual downtrend ending with the Dec low at $22.50.

The rate of decrease measuring from the $32.50 low to the $22.50 low is 32%.

After the Dec high of $370.70, the price began to gradually decrease. On Jul 18, 2020, the price made a high of $94.40. It continued to create lower highs, alternating between gradual and sharp decreases. Several market cycles were completed, with each high being lower than the previous one. Tracing these highs gives us a descending resistance line (see the graph below).

The resistance line was touched five times in total. Four times before the $22.50 bottom and once after. The second attempt after the bottom was successful, and the price has been increasing since.

2020 Correction

On Oct 22, 2020, a low of $1.61 was reached. After 42 days the price reached a high of $55. A sharp decrease followed almost immediately. This decelerated into an overall gradual downtrend that ended with a $1.10 low in January 2020.

Similar to the 2020 correction, the rate of decrease measuring from the $1.61 low is 32%.

After the Dec 2020 high of $55, the price began to gradually decrease. On May 25, 2020, it reached a high of $12. A downtrend followed with periods of both gradual and rapid losses.

Several market cycles were completed, with each high being lower than the previous one. Tracing these highs gives us a descending resistance line (see graph below).

The resistance line was touched five times in total. Four times before and once after the $1.1 bottom. The second attempt after the bottom was successful, and the price has been increasing since.

Analysis Of Similarities

Now, we have two more similarities:

  1. The rates of decrease from the low point two months prior to the high are almost identical in both corrections.
  2. Both downtrends have followed very similar resistance lines.

Despite these similarities, we are examining only two events to try to generate a pattern to predict future prices.

This is an admittedly insufficient data set.

For this reason, our price prediction is meant not only to gauge future price value. It is also meant to assess the validity of the patterns defined herein. If the prices we predict based on the patterns prove true, then the predictions themselves gain validity and may be useable in future analyses.

Time Periods

To determine what prices might be reached, we must determine the time tables during which the patterns we define might unfold. We do this by examining the times of the two corrections:

The price made a high of $55 on Nov 28, 2020. Afterwards, a downtrend followed. It took 415 days for the price to reach the $1.10 low made on Jan 14, 2020.

The price made a high of $370.70 on Dec 17, 2020. Similarly, a downtrend followed. It took 359 days for the price to reach the $22.50 low made on Dec 7, 2020.

Comparing the length of these movements allows us to generate ratios that may help us in determining future prices and when they will be reached.

It took 415 days for the price to move from the high to the bottom during the 2020 crash. During the 2020 crash, this period lasted 359 days. This gives us a rate of 1.155 (415/359)

Moving Average Time Periods

The price of LTC on Bitfinex is analyzed at weekly intervals from Jul 2020 to Mar 2020 alongside the 20 and 40-week (green & black) moving averages (MA).

During the week of Jul 21-Jul 28, 2020, the 20-week MA crossed below the 40-week MA. This is known as a bearish cross and often indicates that a downtrend has begun. The $1.10 low was reached 175 days later.

During the week of Jun 25-Jul 2, 2020, the 20-week moving average crossed below the 40-week MA. This is known as a bearish cross and often indicates that a downtrend has begun. The $22.50 low was reached 154 days later.

The time it took to reach the bottom measuring from when a bearish cross occurred was 175 and 154 days in the 2020 and 2020 correction respectively.

This gives us a rate of 1.136 (175/154).

Therefore we are going to make the assumption that movements in the 2020 correction take 1.145 longer than the ones in the 2020 correction.

The rate of 1.145 is created by calculating the average of the two rates we have found until now; 1.155 and 1.136.

Since the bullish cross occurred 194 days after the $1.1 bottom, this pattern would gain more validity if a bullish cross were to occur 224 days (194*1.145) after the $22.5 bottom, on Jul 15, 2020.

Litecoin Price Prediction 2020

May Swing High

The price made a low of $1.1 on Jan 14, 2020. An upward move followed that took it to a high of $8.96 on Jul 10, 2020. Measuring from the $1.1 low, we get a rate of increase of 550%.

When measuring the rate of increase, we are using opening and closing prices instead of the actual highs or lows reached during the day, in order to remove outliers which could skew the data in one or the other direction. Furthermore, wick highs and lows can differ from exchange to exchange. Therefore, the actual prices used to measure the rate of increase are $1.18 and $7.56.

Similarly, the price made a low of $22.50 on Dec 17, 2020. Using the same rate of increase and the 1.145 time ratio, we predict that the price will be trading around $124 on May 11, 2020.

End Of 2020 Price

In order to figure out the price at the end of 2020, will use the 1.145 rate and apply to the date in the 2020 correction which corresponds to Dec 31, 2020.

On Dec 15, 2020, 333 days after the $1.1 low, the price closed at $3.7. Measuring from the $1.1 low, this is a 203% rate of increase.

Therefore, we will use a 203% increase from the $22.5 low on Dec 17, 2020. This gives us a price of around $70 on Dec 31, 2020.

Litecoin Price Prediction 2020

To predict Litecoin’s price at the end of 2020However, we need to find the price at the end of 2020. In order to do that, we will use the 1.145 ratio to find the date in the 2020 correction which corresponds with Dec 31, 2020.

On Oct 24, 2020, 656 days from the $1.10 low, the price closed at $3.88. Measuring from the low, this is a 224% rate of increase.

Therefore, using the same rate of increase and measuring from the $22.5 low, we arrive at a price of around $76 on Dec 31, 2020.

Conclusion

There are several similarities between the 2020 and 2020 corrections

  • Identical RSI levels are generated at their respective lows
  • Both downtrends follow similar resistance lines
  • The rate of decline from pre-breakout to succeeding low
  • Period of time the swing low is reached after a bearish cross occurs.

The following predictions are made with the assumption that price will follow the pattern laid out in the previous correction and on the time tables we defined:

  • The price should reach a swing high of $124 on May 11, 2020.
  • The price should be trading around $70 in December 2020.
  • The price should be trading around $76 in December 2020.

Until these prices are validated, the patterns we define cannot be considered accurate indicators of future prices. Validation of these prices, however, would also validate the accuracy of the pattern we have isolated. At the end of 2020, we will return to these predictions to assess whether the pattern appears to be holding true or not.

Litecoin price prediction for 2020

Is it going to the year that the cryptocurrency starts catching up with its more high profile rivals? What is Litecoin’s future price?

Here is a sobering thought. If you had bought Litecoin in January 2020 you would have paid around $3 (£2.30 or €2.7). If you had sold it a year later it would have been worth just over $300. You could have pocketed $270 for each coin. Not a bad return.

With a track record like that it is no wonder Litecoin

is very much on the radar of crypto enthusiasts. And Litecoin price predictions are eagerly sought by investors in crypto who want to look beyond Bitcoin.

Yet what is Litecoin, and what makes it different from Bitcoin? And are there any factors that mean it will perform differently from other cryptocurrencies in 2020? Here is our Litecoin price prediction for the coming year and beyond.

Differences between Litecoin and Bitcoin

, for reasons that we will delve into in a moment, is often referred to as the silver to Bitcoin’s gold. It was created in 2020 by a Google

employee, Charlie Lee who saw Litecoin as a response to some of the alleged weaknesses of Bitcoin.

In particular he wanted to significantly speed up the time that coins took when processing payment. He achieved it too, so for example if you buy a product with Bitcoin

it will typically take a minimum of 10 minutes to resolve, which isn’t ideal if you are buying coffee. With Litecoin, the key being in the cryptocurrency’s name, the process is completed in 2.5 minutes.

Another potential advantage of Litecoin

is that there are many more coins available to miners than there are Bitcoin, hence the silver to Bitcoin’s gold comparison. Litecoin is also easier to mine than Bitcoin and miners can largely work with shop-bought PCs rather than having to invest in the specialised equipment needed for Bitcoin.

In August 2020 Litecoin halved, a process in which the number of coins awarded to a successful miner drops by 50 per cent in this instance from 25 to 12.5. We will look at the impact that halving has on Litecoin’s price prediction shortly.

Litecoin recent history

Overall then Litecoin is one of the most popular cryptocurrencies, yet will it remain in this position? What is our best guess as to a Litecoin price forecast?

The first clue as to the future performance of any cryptocurrency is to look back and examine its history. The transformative year for Litecoin was 2020. At the start of the year its price was around the $3 mark. At its absolute peak in mid-December of that year it was selling for more than $300.

Within a year though it had dropped to as low as $30. Its current price is pegged at around $40. Interestingly, the first half of 2020 saw a steady rise to around $140 as June turned into July. But the price fell rather dramatically and year on year it is up by around $5, not much of return.

So why the price fluctuations? Well like most other altcoins, the name given to cryptocurrencies which aren’t Bitcoin, Litecoin’s price often mirrors the fortunes of its higher profile and more popular rivals. In many ways the surge in late 2020 and ongoing collapses of 2020 was an analogue of Bitcoin. Both currencies were fuelled by the hype around blockchain, the growth of Initial Coin Offerings (ICOs) and the general optimism that cryptocurrencies would one day replace fiat currencies. Both succumbed to falls as the crypto bubble burst.

This year has a slightly different story. For the first half of 2020 the trajectory of Bitcoin

was similar, following a steady upward curve, perhaps regaining some of the ground lost during the collapse of 2020.

The peak for both cryptos was June/July, however this is where they diverge. Bitcoin has fallen losing some 40 per cent in value yet for Litecoin it has dropped 250 per cent, a highly significant collapse. Incidentally, both cryptocurrencies enjoyed a “Halloween surge” inspired by pronouncement about blockchain by the Chinese President Xi Jinping, but neither have been able to capitalise on that mini boom.

creator Charlie Lee explained that the movements are often a result of community actions rather than the halving itself.

One of the key theories as to why Litecoin

has fallen so much in the second half of 2020 is based around its halving procedure which occurred in August. It is an event that only happens every four years and has a notable impact on the price of the coin. In this instance the coin price shot up, only to fall as the date for the halving approached.

«So a lot of people are buying in because they expect the price to go up and that’s kind of a self-fulfilling prophecy. So, because they’re buying in, the price does actually go up.» Charlie Lee

To sustain itself, Litecoin needed its miners to carry on mining with the same intent in spite of a 50 per cent drop in rewards. It seemed as if this was the case hence the mini spurt.

For a few weeks before the halving it appeared that Litecoin was going to hold most of its new price. There were optimistic noises from Litecoin champions such as John Kim, who told Cointelegraph:

«I don’t expect the halving to significantly affect the price in the short term. Miners will keep maintaining and even increasing Litecoin’s hashrate and therefore the network will continue to chug along and be secure and not create any sudden panic with a sudden drop in hashrate.» John Kim

But then came the sell-off as investors began to cash in and the price drop, no doubt impacted by a fall in Bitcoin, took hold.

So at the end of 2020 Litecoin is slightly up year on year but a long way off its midsummer peak.

The price of Litecoin is likely to be affected by two main criteria, macro factors, namely phenomenon that will also impact other cryptocurrencies, and specific phenomenon related solely to Litecoin.

What then does 2020 hold for Litecoin?

History has shown us that the overwhelming impact on Litecoin’s price is driven by the former rather than the latter. This means that many of the predictions for the Bitcoin price will hold true for Litecoin

At the current time, Bitcoin is around the $7,000 mark, nowhere near its all-time high of $19,000 but well up on its year start of $3,700.

The big event of 2020 for Bitcoin is likely to be the halving process which is slated for May 2020. Similar to Litecoin, this has traditionally precipitated a major surge in Bitcoin’s price and many people believe that this will occur again.

However, some commentators believe the impact of halving has already been priced in. They argue Bitcoin investors are more experienced than they were previously and have access to several more years of market data.

Other events that could impact on the price of Bitcoin, and by dint of association Litecoin too, are enthusiasm for blockchain in major powers, especially China, and the opening up of Bitcoin to more markets such as a Bitcoin ETF in the US.

Bitcoin champions such as Tim Draper are adamant that a major surge is due next year. In a recent interview with BlockTV, Draper reaffirmed his 2022 target of $250,000 per Bitcoin. Further, a poll of more than 350 financial professionals undertaken by blockchain analysis company Chainalysis, revealed that more than half of them are backing Bitcoin to outperform the S&P 500

stock index in 2020.

Then traders such as Rakesh Upadhyay have argued that bulls are still not aggressively buying at the current price levels of around $7,000 because they are not confident that a bottom is in place. It may not be a question of how high will Bitcoin go, but how far it still has to fall.

There is however a converse to the theory that Litecoin

will mirror Bitcoin in the near future. One of the key issues that Bitcoin faces is scaling. If it is not successful in overcoming technological challenges to achieve this, then Litecoin

may be one of the key beneficiaries. Some, though not many, analysts think that Litecoin could even be Bitcoin’s successor, as it seems to have already addressed some of the scalability issues.

What though of the characteristics that are unique to Litecoin, how might they impact its price prediction?

Inevitably a growth in people using Litecoin could generate a surge in its price. As we mentioned previously Litecoin is faster and cheaper than Bitcoin which has made it popular with users of the dark web. Indeed an estimated 30 per cent of all transactions on the dark web are processed through Litecoin. Should transactions made via the dark web continue to grow so too might the use of Litecoin.

Key Litecoin issues

Litecoin is also popular in China, so it is especially vulnerable to any legislation which might impact its use in that country. If however cryptocurrency regulations in the country are liberalised, Litecoin could benefit enormously.

has also proved to be highly durable and has not been as affected by bear markets as much as some of its rivals. Furthermore, many commentators believe that its technology is stable and reliable and that its founder is a highly credible individual.

On the downside there is the issue of how the coin might develop from a technological perspective. It is overseen by the Litecoin Foundation but as of late 2020 there was degree of speculation as to how much innovation was going to take place in the near future. Put baldly, Litecoin could fall behind some of its rivals as they tweak and improve their protocols.

So will Litecoin go up? Overall it appears likely that Litecoin will rise over the coming months spurred on by Bitcoin price rises and a degree of optimism about its own future.

The key question is how much. Cryptoground is positive about the future of the coin. It assumes that Litecoin will reach $136.52 in one year and in five years could be as high as $398.72.

CryptoInfobase’s Litecoin price prediction is that it will undertake two major price jumps, one in 2020 and a second in 2025. It will finish 2020 at $320 and by 2025 it will have a price of $950.

A more modest rise is predicted by DigitalCoinPrice, which has the coin on $103.444 by the end of 2020.

Overall the future for Litecoin looks promising, the big question is how promising?

(LTC) Litecoin Price Prediction 2020 / 2020 (Updated 05/03/19): LTC/USD Stagnating in the $70s

In This Article

If you want to read a summary of our most recent short-term Litecoin (LTC) price analysis and predictions click here!

Litecoin is the “digital silver” of cryptocurrency—or at least that’s what we’ve heard. It modeled after Bitcoin BUY NOW —”digital gold”—but with an amended Proof-of-Work Proof of work and proof of stake are both ways of achieving trustless and distributed consensus on the blockchain. Many. More consensus algorithm.

In addition, the Litecoin Foundation has engaged in numerous partnerships and sponsorships to promote the cryptocurrency. Members have even discussed integrating the Mimblewimble Privacy protocol into the coin. This would cause massive differentiation from Bitcoin.

What the future holds for Litecoin may not entirely be clear, but its price has been steadily increasing since Dec 2020.

Will these gains hold or is a crash going to bring the price of Litecoin back to previous lows?

Regular Price Analysis of Litecoin (LTC)

LTC reached a high of almost $79.5 on May 1. It has been decreasing since, trading inside the symmetrical triangle we have outlined below:

At the time of writing, the price was trading very close to the resistance line of the triangle.

Based on our latest analysis, LTC/USD may decrease and break down from the triangle. It is likely to reach the support area near $74.5.

To read our full Apr 25 analysis of LTC/USD and LTC/EUR, click on the green button below:

Oh Look, There’s More…

  • Fundamental Analysis
  • Technical Analysis
  • Litecoin Price Prediction 2020
  • Litecoin Price Prediction 2020
  • Conclusion

Fundamental Analysis

Litecoin (LTC) is a peer-to-peer digital currency and open-source software project which designed after Bitcoin (BTC).

. In fact, if bitcoin is ‘digital gold,’ Litecoin fashions itself as ‘digital silver’ — and largely piggybacks on everything Bitcoin does. This fact is both Litecoin’s greatest strength and its greatest weakness.

Privacy Coin?

In late Jan and early Feb 2020, members of the Litecoin Foundation made statements about adding enhanced privacy features to LTC. First, Charlie Lee announced his intention to add confidential transactions to the LTC blockchain on Jan 28, 2020. Franklyn Richards furthered the discussion and added that the Foundation was looking to integrate the Mimblewimble protocol into LTC using a soft fork.

Mimblewimble integrates both confidential transaction and CoinJoin innovations to encrypt transaction amounts and their sources. It enables the buyer and seller to remain more anonymous. If Mimblewimble were integrated, the fungibility, privacy, and scalability of LTC could greatly increase while avoiding the contentions of a hard fork. Furthermore, it would add significant market differentiation to the cryptocurrency. Currently, Beam (BEAM) and Grin (GRIN) are the only two coins to use Mimbelwimble.

Halving

In Aug 2020, LTC is expected to undergo its second halving. This means that the miner’s reward will be cut in half from 25 litecoins to just 12.5. This could disincentivize miners to continue mining. In order for miners to continue earning at their current rate, the value of LTC will have to double or transaction fees must significantly increase. An increase in transaction fees may disincentivize the use of LTC. The building of sponsorships and partnerships with organizations like TokenPay, Ultimate Fighting Championship (UFC), Mammoth Film Festival, and others may, however, increase the value of LTC and, thus, the miner’s reward.”

If you could send me the final edition after revisions or edits so I have the word count, it would be greatly appreciated.

SegWit

Like its big brother, Bitcoin, Litecoin supports the soft-fork change in transaction format called Segregated Witness — more commonly known as Segwit. The upgrade continues to become more widely adopted as time progresses, and is an example of how Litecoin benefits from having the same core technology like Bitcoin.

Lightning Network

Just as Litecoin supports Segwit, it also supports the highly-anticipated second-layer payment protocol called The Lightning Network If you’ve been paying any attention to Bitcoin in the last few years, you have undoubtedly heard the term “Lightning. More .

The Lightning Network plans to enable lightning-fast micropayments between participating nodes and is quickly becoming a viable solution to Bitcoin’s scaleability concerns — at least for small payments. The Lightning Network is less notably connected to Litecoin, but it is important to note that a successful Lightning Network is not only good for BTC but also LTC.

Exchanges & Wallets

Litecoin (LTC) is exchanged on virtually every cryptocurrency exchange under the sun, and cryptocurrency traders would be hard-pressed to find a reliable exchange which doesn’t support the seventh-ranked cryptocurrency.

Litecoin’s current 24-hour trading volume across tracked exchanges is $375,810,001 USD, according to CoinMarketCap.com.

Litecoin can be stored on most of the most popular hardware wallets, including the CoolWallet S, Opendime, Ledger Nano BUY NOW S, Trezor, KeepKey, and BitBox.

Investors, traders, and hodlers When traders think about cryptocurrencies, they focus more on how they can profit from the price swings. But, what happens. More of Litecoin should have no problem finding storing solutions and trading platforms for their LTC.

Charlie Lee Cashed Out at the Top

Litecoin was created by former Google and Coinbase employee Charlie Lee.

Lee famously sold all of his Litecoin at the very top of the cryptocurrency bubble, when LTC was at its all-time high. The creator cited a conflict of interest as the primary reason for selling his stockpile of the cryptocurrency.

Not everyone is convinced that Lee sold his Litecoins for benevolent reasons — especially given the fact that he sold at the very top and undoubtedly earned a sizeable profit.

Prominent silver bull and YouTuber ‘TruthNever Told’ believes Charlie Lee’s Litecoin sale was little more than cashing out of a Ponzi scheme, in which the creator created a rip-off of Bitcoin with no intrinsic value, convinced investors that it was valuable, and then cashed out at the top. While his argument is persuasive, it is worth noting that the YouTuber in question believes all cryptocurrencies are effectively worthless — and thus his opinion should probably not be factored in too seriously when discussing price predictions and forecasts.

LitePay Failure

In February 2020, Litecoin (LTC) experienced a strong pump off the news that LitePay — a credit card-like LTC payment solution for vendors — would accelerate adoption of the cryptocurrency in the retail sector.

Those hoping to easily use their LTC at retail vendors were sadly disappointed, however, when the project shut down only one month later. LitePay CEO Kenneth Asare shut down all operations and made preparations to sell the company at the end of March. Since then, the project has gone entirely dormant. At the time of this writing, the official LitePay website displays a simple logo and nothing else.

Charlie Lee himself apologized for hyping up the project. Though mistakes happen and it was good of Lee to apologize, BeInCrypto believes this instance further damaged the creator’s reputation.

Like everyone else, we got too excited about something that was too good to be true and we optimistically overlooked many of the warning signs. I am sorry for having hyped up this company and vow to do better due diligence in the future. https://t.co/khIjeHnyZ1

LitePay serves as an example of why investors should not buy into the hype and conduct their own due diligence on hype-related developments connected to altcoins.

Bitcoin is Better?

Perhaps the biggest problem for Litecoin is the fact that Bitcoin still has a much larger market cap and price. Because Litecoin designed itself after Bitcoin, it will have difficulty competing unless it can successfully display differentiation. Furthermore, the differences offered must be desired by end users.

Of course, Litecoin was never designed to compete with Bitcoin. Both coins can exist together. They may develop different uses and audiences. Both could be integrated into distinct industries or communities as currency while another is integrated into other industries and communities.

The lower price tag of one litecoin versus one bitcoin is also somewhat enticing. For the price of one bitcoin, an individual could buy around 70-80 litecoins. In the long-term, should cryptocurrencies succeed to the point where it is legitimately difficult to get ahold of Bitcoins, Litecoin may see success in the retail sector as a more effective means of payment.

In essence, Litecoin could become a more effective cryptocurrency than Bitcoin — but this is uncertain.

Technical Analysis

On Nov 28, 2020, Litecoin reached a high of $55. A sharp decrease followed and led to new lows in mid-January 2020 of $1.10.

Price rebounded. Within six months, highs of nearly $8.96 were reached.

By early September, prices had dropped. For around two years, LTC traded between $3-$5 before rapid price spikes in late 2020 brought LTC to highs of over $370 in mid-December.

Price has been on a downtrend since. LTC bottomed out on Dec 7, 2020 at $22.50.

Relevant upward trends are listed below with the lows and highs experienced at the respective beginning and end of each:

TIME FRAMES FOR UPWARD MOVEMENT LOW (DATE EXPERIENCED) HIGH (DATE EXPERIENCED)
Oct 2, 2020 – Nov 28, 2020 $1.41 (Oct 2, 2020) $55 (Nov 28, 2020)
Jan 14, 2020 – Dec 19, 2020 $1.10 (Jan 14, 2020) $370.7 (Dec 19, 2020)
Dec 7, 2020-? $22.50 (Dec 7, 2020) $.

It appears as if we are in the midst of a third significant upward trend based on the significant price increases since the bottom on Dec 7, 2020.

In this analysis, we will predict the date in which the price and date of the next peak. Furthermore, we will assess Litecoin’s potential price at the end of 2020 and 2020 respectively.

RSI Similarities

To begin, we seek to isolate similarities between these upward trends within the technical indicators. To begin, we examine the similarly low relative strength index (RSI) ratings during each bottom.

The price of LTC on Bitfinex is analyzed at weekly intervals from Jul 2020 to Mar 2020 alongside RSI in order to figure out where our current position is relative to the 2020 correction:

To better visualize large price fluctuations, logarithmic charts are going to be used in this analysis.

The lowest RSI recorded during the 2020 correction was 29. This occurred on the weekly candle for the week of Jan 12-Jan 19, 2020. The $1.10 bottom was also reached during this period.

Similarly, an RSI of 29 was reached during the week of Dec 3-Dec 10, 2020. The $22.50 bottom was reached during this period as well.

This may suggest that RSI may reach similarly low levels of under 30 shortly before LTC bottoms out after a longterm downtrend.

Therefore, we may have the first similarity between the two bottoms: Oversold RSI values(

The resistance line was touched five times in total. Four times before and once after the $1.1 bottom. The second attempt after the bottom was successful, and the price has been increasing since.

Analysis of Similarities

Now, we have two more similarities:

  1. The rates of decrease from the low point two months prior to the high are almost identical in both corrections.
  2. Both downtrends have followed very similar resistance lines.

Despite these similarities, we are examining only two events to try to generate a pattern to predict future prices.

This is an admittedly insufficient data set.

For this reason, our price prediction is meant not only to gauge future price value. It is also meant to assess the validity of the patterns defined herein. If the prices we predict based on the patterns prove true, then the predictions themselves gain validity and may be useable in future analyses.

Time Periods

To determine what prices might be reached, we must determine the time tables during which the patterns we define might unfold. We do this by examining the times of the two corrections:

The price made a high of $55 on Nov 28, 2020. Afterwards, a downtrend followed. It took 415 days for the price to reach the $1.10 low made on Jan 14, 2020.

The price made a high of $370.70 on Dec 17, 2020. Similarly, a downtrend followed. It took 359 days for the price to reach the $22.50 low made on Dec 7, 2020.

Comparing the length of these movements allows us to generate ratios that may help us in determining future prices and when they will be reached.

It took 415 days for the price to move from the high to the bottom during the 2020 crash. During the 2020 crash, this period lasted 359 days. This gives us a rate of 1.155 (415/359)

Moving Average Time Periods

The price of LTC on Bitfinex is analyzed at weekly intervals from Jul 2020 to Mar 2020 alongside the 20 and 40-week (green & black) moving averages (MA).

During the week of Jul 21-Jul 28, 2020, the 20-week MA crossed below the 40-week MA. This is known as a bearish cross and often indicates that a downtrend has begun. The $1.10 low was reached 175 days later.

During the week of Jun 25-Jul 2, 2020, the 20-week moving average crossed below the 40-week MA. This is known as a bearish cross and often indicates that a downtrend has begun. The $22.50 low was reached 154 days later.

The time it took to reach the bottom measuring from when a bearish cross occurred was 175 and 154 days in the 2020 and 2020 correction respectively.

This gives us a rate of 1.136 (175/154).

Therefore we are going to make the assumption that movements in the 2020 correction take 1.145 longer than the ones in the 2020 correction.

The rate of 1.145 is created by calculating the average of the two rates we have found until now; 1.155 and 1.136.

Since the bullish cross occurred 194 days after the $1.1 bottom, this pattern would gain more validity if a bullish cross were to occur 224 days (194*1.145) after the $22.5 bottom, on Jul 15, 2020.

Litecoin Price Prediction 2020

May Swing High

The price made a low of $1.1 on Jan 14, 2020. An upward move followed that took it to a high of $8.96 on Jul 10, 2020. Measuring from the $1.1 low, we get a rate of increase of 550%.

When measuring the rate of increase, we are using opening and closing prices instead of the actual highs or lows reached during the day, in order to remove outliers which could skew the data in one or the other direction. Furthermore, wick highs and lows can differ from exchange to exchange. Therefore, the actual prices used to measure the rate of increase are $1.18 and $7.56.

Similarly, the price made a low of $22.50 on Dec 17, 2020. Using the same rate of increase and the 1.145 time ratio, we predict that the price will be trading around $124 on May 11, 2020.

End of 2020 Price

In order to figure out the price at the end of 2020, will use the 1.145 rate and apply to the date in the 2020 correction which corresponds to Dec 31, 2020.

On Dec 15, 2020, 333 days after the $1.1 low, the price closed at $3.7. Measuring from the $1.1 low, this is a 203% rate of increase.

Therefore, we will use a 203% increase from the $22.5 low on Dec 17, 2020. This gives us a price of around $70 on Dec 31, 2020.

Litecoin Price Prediction 2020

To predict Litecoin’s price at the end of 2020However, we need to find the price at the end of 2020. In order to do that, we will use the 1.145 ratio to find the date in the 2020 correction which corresponds with Dec 31, 2020.

On Oct 24, 2020, 656 days from the $1.10 low, the price closed at $3.88. Measuring from the low, this is a 224% rate of increase.

Therefore, using the same rate of increase and measuring from the $22.5 low, we arrive at a price of around $76 on Dec 31, 2020.

Conclusion

There are several similarities between the 2020 and 2020 corrections

  • Identical RSI levels are generated at their respective lows
  • Both downtrends follow similar resistance lines
  • The rate of decline from pre-breakout to succeeding low
  • Period of time the swing low is reached after a bearish cross occurs.

The following predictions are made with the assumption that price will follow the pattern laid out in the previous correction and on the time tables we defined:

  • The price should reach a swing high of $124 on May 11, 2020.
  • The price should be trading around $70 in December 2020.
  • The price should be trading around $76 in December 2020.

Until these prices are validated, the patterns we define cannot be considered accurate indicators of future prices. Validation of these prices, however, would also validate the accuracy of the pattern we have isolated. At the end of 2020, we will return to these predictions to assess whether the pattern appears to be holding true or not.

[Disclaimer: The contents of this article are not intended as financial advice, and should not be taken as such. BeInCrypto and the author are not responsible for any financial gains or losses made after reading this article. Readers are always encouraged to do their own research before investing in cryptocurrency, as the market is particularly volatile.]

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