September 5 had a bad start for Litecoin price against the US Dollar as it tested the supports around the $60, letting the value drop to $59.05 for a moment and returning up again while correcting.
That is approx 36% loss in almost 2 days in price while the market cap dropped for $1.7 billion since the all time high $91.32: from $4.8 bln to $3.1 bln – According to Coinmarketcap. The $59 mark has not be touched since the Aug 27 which is more than a week now.
For the moment a minor recovery is up ahead as it reached now $65.21 of price but with a loss of 6.00% in the last 24-hours. In near-term the declining channel and correcting flow could be continuing so do not book any profit for the moment or partly do until buying pressure returns to change the pair price pattern LTC/USD. After breaking below the $60 mark it could very likely continue towards the $50 level where important supports will be tested.
For the moment this could turn down any optimistic feeling or thought because of the Monday and Tuesday price massacre, but this general market declining phase should be acknowledged by trader/investors which followed the significant market rocketing of prices one after another for a couple of weeks now.
With Asian exchanges like Bithumb breaking daily trading records and cryptocurrencies reaching all-time highs every day, it is of understanding what goes fast up in value will roll down swiftly too. Only Bitcoin reaching the $5,000 mark, triggered a $13 billion market sell-off in a couple of hours that has caused all other virtual coins to be dragged with it.
Litecoin – it did cement its position quite well on the top-ten of digital currencies which did hold strong longer than the other leading coins until the declining phase grabbed “the Silver Coin” too.
For any long-term investor – hopes should not be lost. As we have witnessed how much market changing a network improvement could be with Bitcoin and the Segregated Witness locking-in and activation, this could be happening to Litecoin in the future too.
With both crypto-coins BTC and LTC having SegWit activated (remember – Litecoin was the first to adapt the Segwit Protocol on its Blockchain network) Lightning Network is made possible, possibly encouraging greatly the trading and investing which will be becoming much easier and cheaper in any way – “cross-chain swaps”. Exchanging directly BTC and LTC without a third trusted party is of great importance and makes the user feel at ease as it is directly done.
Not forgetting that the particular concept will be connecting much close Litecoin with the leader in the crypto-pack Bitcoin which has a market cap of $70 billion right now.
Charlie Lee (LTC creator) comments:
“Bitcoin will always be the gold standard because bitcoin will have the strongest network, the most secure, the most money mining it. Litecoin will be second to that and bitcoin being the most secure will obviously cost more … Litecoin transaction will cost less. So Litecoin will provide a niche where it will be more used for payment whereas bitcoin will be more used for storing.”
“My vision is that with Lightning network … you wouldn’t need to hold all these coins, you could just hold all your money in bitcoin or litecoin, and if there is an application that requires ether or some other token, you can easily … convert it on the fly to the token that you need,” Lee said.