In 2011, Charlie Lee, a former Google employee decided to create Litecoin, inspired by that nascent Bitcoin project, using the same code, but mainly improving speed and transaction cost. But is this cryptocurrency really worth investing in?
Today there is no doubt about the success of the project. Litecoin’s market capitalization ensures the massive adoption it has garnered.
Its label to identify it in the markets is LTC. Currently with a volume of trade of more than 4,000 million dollars every 24 hours.
Litecoin has gone from costing $ 1.11 in 2015 to a record high of $ 375.29 in December 2017.
At the time of writing, its price is USD 42.27. But what about your future? Is Litecoin worth investing for the long term? We answer below.
Litecoin fundamental analysis to invest in the long term
Litecoin is frequently compared to Bitcoin, as its operation is practically the same.
However, LTC has come to improve very important aspects of its parent, as I mentioned, mainly related to transactions.
The costs for making a transfer in the LTC network are about 50 times smaller than in BTC. To make matters worse, it is also much faster.
And despite the fact that these improvements have various cryptocurrencies, Charlie’s project did it quite early. With this, it has gained an advantage in development and confidence in the ecosystem.
Like all cryptocurrencies, LTC is fueled by investors’ attempt to flee the traditional banking system, seeking more freedom for their money.
Adoption growth will be the key to increasing crypto market capitalization. And, without a doubt, Litecoin will be one of the ones that increases in price as this happens.
A few months ago there was a wave of news against LTC, related to the abrupt decrease in the development of its code, evidenced in the project’s GitHub.
In counterpart, recently through the Bitcoin Foundation page, the arguments were given to eliminate credibility to those news that both FUD generated.
Throughout the post it is explained why it is not relevant that Bitcoin has so many internal developers. In it it is exposed that being open source projects, everyone can use the advances of others.
In this sense, Bitcoin core uses all the new improvements to Bitcoin core, just making some compatibility adjustments.
Litecoin technical analysis
When thinking about investing in Litecoin in the long term, the main thing to observe is its historical trend and, as we have already seen, its price has increased exponentially, making it more than clear that it has been in a continuous search for higher and higher peaks. high.
If we technically analyze the price of Litecoin in the monthly time frame, we observe the historical upward trend that it maintains.
Last year in 2019, it hit its lowest high, an initial bearish signal. However, it does not gain credibility until the bears achieve a lower minimum.
Currently, the price is visiting an important support zone, the same one where the price bottomed out during the crypto winter of 2018. This is a good area to consider purchases, in case of observing a good bullish reaction.
For a little more short-term insight, let’s look at the weekly time frame.
From the weekly candle chart, the outlook is a bit bleak for the coming weeks / months.
The EMA of 8 and SMA of 18 are crossed lower, this being a sign of a bear market that can extend for a good amount of time. Meanwhile, the 200-week SMA is also bearish.
The price is quite likely to attempt to resume bearish sentiment, which intensified in early March of this year, and seeks to at least reach the support zone left by 2018 lows.
conclusion
Litecoin’s position in the current crypto market gives it an advantage during a favorable situation of the overall ecosystem. At that time, its price will certainly be pushed upwards.
Its fundamentals remain in favor of project growth, while its historical uptrend supports a rise in its price.
Investing in Litecoin in the long term seems like a good idea. Always remember to carry out an exhaustive investigation on your own, in order to draw your own conclusions.
