Like all the other cryptos, Litecoin (LTC) has dropped hard in the last few hours and broken below the $70 level. It is now trading at around $65. Can it go lower than that? Well, from the weekly charts, Litecoin is clearly in a bearish trend and has been, for some time now. In the last 6 months, Litecoin has made 2 lower highs, the first one at $251 and the second one at $181. With the rejection of each of these highs, the price dropped even harder than before. The third wave, formed a lower high at $94.1, and since it has been rejected, Litecoin will most likely touch new lows in the near future.
This is easily confirmed by the fact that Litecoin (LTC) has dropped below the 100-day moving average at $70, and the next support level is at $53. If it falls below that, it could very easily find long-term support at $37 along the 200-day moving average. The likelihood of this happening is confirmed by the fact that Litecoin has adhered to these chart patterns all through the last 6 months, even with all the good news that have come into the market.
As such, one last drop to sub-$50 is highly likely, as long as the entire market remains bearish. However, that doesn’t mean that Litecoin is not a good investment. In the long-run Litecoin (LTC) stands to emerge as one of the best performers in the market, for a number of reasons.
The 2019 block-reward halving
Historically, block halving has led to an increase in prices both for bitcoin and Litecoin (LTC). That’s because it cuts on the supply of coins entering the market. The 2019 halving won’t be any different, since it will further cut on the number of Litecoins entering the market, which means demand will be chasing an even fewer number of coins. That’s a good reason to be bullish long-term on LTC and to make investments, while prices are favorable enough, like they are right now.
Litecoin is already established as a payments crypto
As the bear market bites hard, there is an increased sense of reality that a good number of cryptocurrencies will die-off. Only the strongest, those with realistic use-cases, will survive. Litecoin happens to be one of those whose use-case is already clear in the market. It is focused on payments and has already been adopted way more than any other crypto angling for the same market. Since there can only be so many cryptos getting adopted for everyday payments, chances are that many will fall off, and adoption will consolidate towards Litecoin (LTC), as bitcoin takes the role of store of value in the future.
Therefore, any drop in the price of Litecoin at this point is actually an opportunity to buy more. The reality is that crypto is in a bear market, and might stay there for some time, but long-term things look good.