Initially created by former Google worker and later CTO of Coinbase Charlie Lee, Litecoin (LTC) was one of many first critical altcoin tasks developed with an precise objective.
Whereas Bitcoin was seen as “digital gold” and a possible long-term retailer of worth, Litecoin was created to be “silver” and used for on a regular basis functions.
In essence, Litecoin possesses lots of Bitcoin’s options, however is “lighter” to hold and faster to transact. Lee believes the objective and mission of Litecoin is to be a stay testnet for Bitcoin.
LTC has had a turbulent time in 2019, however how will Litecoin fare in 2020? Will increased volumes and contemporary money spur a brand new bull run after the disappointment of the halving?
Primarily, for any worth appreciation to occur, we’d like critical quantity coming into the cryptocurrency market.
LTC/USD efficiency
Within the quick time period, the outlook for Litecoin is kind of grim.
Previous to mid-June, the altcoin was the perfect performing digital asset of 2019, rising greater than 170% in fewer than 90 days and peaking at round $145. Nevertheless, the uptrend sparked by the Litecoin halving didn’t final.
The fact is that the Litecoin halving, which happened a number of months again, might have been a ‘purchase the hearsay, promote the information’ sort of occasion. Seasoned merchants took earnings weeks earlier than it happened.
A critical summer season downtrend then noticed LTC tumble to round $49 earlier than a market-wide pump final month following Chinese language President Xi Jinping’s bullish feedback on blockchain.
Nevertheless, the optimistic sentiment appears to have light away once more and LTC is again in a downtrend.
In Bitcoin phrases, the outlook is even worse.
LTC/BTC efficiency
Wanting on the chart above, we will instantly conclude that LTC is close to its yearly low in opposition to Bitcoin.
In the mean time, LTC is simply above its 20-day EMA, sitting round 607,800 sats. Quantity-wise, worth is discovering some weak assist near a key stage, between 600,000 and 710,000 sats. The following sturdy stage of resistance must be felt round 900,000 sats.
If LTC is ready to break above the 50-day EMA and maintain some assist under the 200-day EMA, we may see a sudden shift in investor preferences. Nevertheless, in the intervening time, it appears to be like like Litecoin is in for a interval of accumulation.
Litecoin in 2020
Given Litecoin’s total panorama, each by way of USD and BTC, one may argue the altcoin is posed for a optimistic run throughout 2020.
For Litecoin to begin a critical bull run, I imagine contemporary money wants to come back into Bitcoin initially earlier than buyers and merchants transfer some beneficial properties into LTC.
The explanation why I argue BTC has to pump first is because of historic causes. each charts, it appears LTC/BTC strikes earlier than LTC/USD.
Due to this fact, I imagine we may doubtlessly see a mini-rally earlier than Could 2020 given the upcoming Bitcoin halving, which can cut back Bitcoin’s block reward by 50%.
Throughout 2019, LTC pumped previous to its personal halving, which took worth near all-time highs in Bitcoin phrases.
If Bitcoin recovers to its 2019 highs, round $14,000, we may undoubtedly see a few of the beneficial properties trickling down into the highest altcoins corresponding to Litecoin.
Charlie Lee has additionally confirmed privateness is on the horizon for Litecoin subsequent 12 months.
Litecoin is making strikes so as to add privateness options by the Mimblewimble protocol.
In response to Lee:
“We’re working with the Grim++ builders so as to add an implementation of Mimblewimble. It provides an extension block to the Litecoin main-chain. You’ll be able to transact between chains to make use of enhanced privateness.”
The objective can be to provide Litecoin customers improved privateness options when transacting.
If there’s an altcoin basically prepared for a brand new push, LTC appears to be the one.
Will LTC moon in 2020? We’ll have to attend and see.
Protected trades!
The publish What’s the outlook for Litecoin in 2020? appeared first on Coin Rivet.
