Litecoin was created as a peer-2-peer cryptocurrency. The software is released under MIT/X11 licence. The creation of new coins and their transfer are managed by an open-source cryptographic algorithm. In terms of its technical specifications, the coin is very similar to Bitcoin (BTC). Litecoin allows for instant and near-zero-cost payments to anyone on the planet. Litecoin operates a global, decentralized payment network. Mathematical security is provided by the network, allowing individuals to take control of their finances. Litecoin offers faster confirmation of transactions and more efficient storage than any other math-based currency. Litecoin has a large industry following, a high volume of trade and a lot of liquidity. It is regarded as Litecoin’s complementary currency to Bitcoin.
Charlie Lee, a Google former employee, released Litecoin through an open source client via GitHub on the 7th of October 2011. Litecoin’s network was launched on October 13th, 2011. It was a scrypt-based fork of Bitcoin Core. Litecoin’s total value grew by a staggering 100% in 24 hours during November 2013. Litecoin surpassed a market capitalization of $1 billion in Novembre 2013. By the end of November 2017, its capitalization had reached US$4,600,000,000 ($85.18/coin). By mid December 2017, the marketcap for the coin reached US$20,000,000,000. Each of its litecoins was worth approximately US$371.00.
Segregated Witness became available in May 2017 for Litecoin, the first top-5 cryptocurrency (based on market cap). In May of that year, Litecoin was the first cryptocurrency to use the Lightning Network. The transaction, which transferred 0.00000001 LTC between Zurich and San Francisco, took less than a second.
Litecoin’s features are different from those of Bitcoin. The Litecoin Network aims at processing a block once every 2.5 minutes instead of Bitcoin’s 10 minute time frame. The developers say that Litecoin’s transaction confirmation is faster because of this. Litecoin’s proof-of work algorithm uses scrypt, a sequential memory hard function that requires asymptotically higher memory than an algorithm that is not memory hard.
FPGAs and ASICs used to mine Litecoin require more complexity and are more expensive than devices designed to mine Bitcoin (which uses SHA-256). The rapid rise of Bitcoins and other cryptocurrencies prompted a wave of purchases, mainly made with credit cards. Due to the steep decline of 2018, the five largest credit card companies have banned or announced a restriction on credit card purchases for cryptocurrency. Due to this, those who entered the rally late and had borrowed money to purchase cryptocurrency, but are now suffering losses greater than 50% will have to take responsibility for their actions.
This will likely result in a new round of panic-selling, which is sure to shake out those with weak hands. These lower levels are likely to attract new investors who have been waiting for the right time to invest and believe in technology. Let’s identify the lower levels which can attract buyers.
BTC/USDOn 2nd February, Bitcoin’s price was a bit higher at $8,000. The pullback did not reach our short-term target of $10,700. We predicted a move back to the EMA of 20 days, but a sales frenzy only lasted 1-3 weeks. The cryptocurrency is now down again after a day’s recovery. The price is now below the February 2 low. If the bears can sustain their position below $8,000 then the BTC/USD pairs is likely to drop to $6.239 as the pattern target.
Below this, the drop can reach $5,450. This will retrace the last leg of rally by 100 percent. We believe the recent panic selling that has brought the market to these levels is a great opportunity for long-term traders. Investors, however, should buy incrementally rather than buying everything at once. We recommend investing between $5.500 and $5.800 in an amount equal to 30 to 40%.
ETH/USDIn a previous analysis, it was expected that there would be some resistance between $1,025 and $1,050. Ethereum’s price fell from $999 to $770 on February 3. Our previous recommendations were to take long positions if the price drops to the $770-$820 range with a stop of $700. The $770-$785 range remains a strong zone of support for the ETH/USD. However, if the support zone is broken, a fall to $640 seems likely. The 78.6 per cent retracement is $611.34. In this zone, we expect to see strong buying between $61134 and $640. However, it is possible that the 20-day EMA will complete a crossover in the negative direction. So we don’t recommend any new trades.
BCH/USD We predicted Bitcoin Cash would pull back to a downtrend line. However, it declined from the $1,316.07 level. Today, the price has dropped below $1,000. The next support is $854.3135. The BCH/USD pairs does not seem to be showing signs of a top, except the RSI which is on its way into oversold territory. We are still waiting for some evidence of buying to emerge before trading on the BCH/USD pair.
Ripple/XRP is also testing the February 2 lows. Comparatively, the XRP/USD pair has not yet fallen below its February 2 lows of $0.63252. The XRP/USD pairing is showing signs of exhaustion. The $0.61 level is also the last support. After that, the price may fall further to $0.24. After it breaks through the downward trend line, the price will turn positive on a short-term basis. The bears will most likely be selling pullbacks up until that time.
XLM/USD Stellar failed to recover from the dramatic pullback that occurred on February 2. The pair has again fallen below the critical $0.296 support. The XLM/USD will likely fall to the support of the descending slant if this support is broken. This level could also be broken, which would lead to a drop down to $0.1. We recommend you wait until the downward trend has changed to an upward one before taking any new trades.
LTC/USD Litecoin experienced a stronger pullback than other cryptocurrencies as it approached the 20-day EMA. This indicates a desire to buy at lower levels. If bulls start to accumulate near the levels of $107 and $121, it could be an indication that a bottom may be in sight. If the LTC/USD pairs breaks through the $175 level, we may be interested. If the bears are able to break below the February 2 lows, then a drop towards the final support level of $84.708 will be likely. This uncertainty is why we don’t recommend taking any long positions at this time.
XEM/USD NEM has retested the February 2 lows. The bulls may be able to maintain the lows and move the price towards the downward trend line. The next level of support is $0.31672 if the lows break down. Once it maintains above the downward trend line, the XEM/USD will be positive on the short term.
NEO/USD NEO has been outperforming USD until today. It was trading above the SMA of 50 days. Today, NEO has fallen below the SMA 50, the support level of $93.53 (the low for February 2), and the support level of $86.143. It still holds minor resistance at $86.143. Below that, it can fall as low as $64.83. The NEO/USD pair could fall to $27.13, if this level is also not held. We recommend that you hold any trades until further notification, given the recent weakness.
LitePay, a company based in the UK, is launching a new point-of-sale technology which will enable retailers to accept Litecoin. It allows retailers to accept Litecoin in real-time and convert it to fiat currency (local currency). This eliminates the risk of fluctuation for the retailer. Express published the story, which led to initial doubts about the launch date (especially because the outlet had based their report on supposedly ‘insider data’). Charlie Lee, Litecoin’s founder, Tweeted an article soon after the report hit the press. This suggests that the expectation of a near-term release is not as unrealistic as it may seem. Litecoin will also be listed on UnoCoin in the near future (along with a select few other coins) and he followed that Tweet up by announcing the launch date of Litepal. The launch of Litepal, a full-service Litecoin payments processing company is also outlined in a report.
If the news had reached the press two months earlier, we would be witnessing a surge in the price for LTC as a result of an anticipated increase in demand. The chart shows that LTC is now down 16% in comparison to fiat currency and is even lower in relation to BTC. It is important to realize that these developments can’t go unnoticed for long. The LTC market will benefit from the news and developments which are waiting to be noticed once the current cloud of sentiment lifts.
