(Updated August 1, 2020) Last August, we saw Litecoin go through halving where its block reward reduced from 25 LTC to 12.5 LTC. Before the highly anticipated event, the price of LTC managed to stage a rally of sorts as investors bought in since they expected the price to rise once the halving event took place.
However, the opposite happened. Litecoin managed to peak at around $140 in June and since then has been in a steady decline.
But lately, LTC has been working on several initiatives that are bound to push its price higher in 2020. These include the introduction of confidential transactions that will help wear off the fungibility problem. It’s a move that will help LTC step out of the shadow of BTC by creating its own identity.
Also, recently the platform stepped into philanthropy, and by teaming up with UNICEF kid power, a program that shows children they have the potential to make a difference. We know it’s not price-related, but it’s positive for the image of LTC.
In this piece, we are going to review a few expert predictions, news events, and analysis of the charts to see why 2020 seems promising for LTC.
Litecoin Price Prediction – What Experts Believe About the Litecoin Price?
Litecoin is the 7th largest digital currency in the market with a market cap of over $4.9 billion. The coin was created in 2011 and was built on the same blockchain as BTC. Additionally, LTC can be used to make payments.
The biggest advantage of LTC over BTC is speed. It is referred to as “Lite” because it’s four times faster than BTC.
Crypto price prediction isn’t that easy, given the volatile nature of the market. However, this doesn’t stop people from trying to predict what the price will be using different metrics.
According to the technical analysis done by TradingBeasts, they see the coin in two or three years, as a good investment that will bear handsome returns.
Crypto prediction website Coin Price believes 2020 will be a bull market for all cryptocurrencies, and based on this, they see the price of LTC going to the $124 level.
The positive prediction is supported by DigitalCoinPrice, which sees LTC trading at around $106 by the end of this year.
Not everyone is very optimistic about the price of LTC as Wallet Investor sees a reverse in fortunes for LTC. They predict the coin would end the year at $22, which would mean a loss of more than 50% on its current price. But we believe this is highly unlikely given that Litecoin is working on several initiatives that are likely to boost its price.
George Tung, LTC prediction of $1500 by the end of the year was backed by John McAfee, who stated that the coin could rise just as much, if not more, than BTC.
After Charlie Lee, the CEO of Litecoin platform left LTC for Coinbase, then went back to LTC again, many believe that the digital currency’s price has a bright future.
Additionally, technical analysis has captured several opportunities wherein Litecoin price could be among the top gainers by the end of 2019. Other charts show LTC price gains expected to spread over to 2020 and beyond.
Profit Confidential & Kelly
A while ago, there was a litecoin price prediction that caught our eyes. The price prediction was from Kelly, a manager of BK Capital Management LLC, which claimed Litecoin could hit $500. The price prediction was posted in 2017 in December, but we’re still on track to reach that amount. However, we need to do it step by step with a steady growth. This is a good litecoin price prediction for 2025, but not for this year.
Litecoin Partnerships in 2020
In a bid to boost the adoption of Litecoin as a payment method around the world, the fifth largest cryptocurrency has partnered with two influential organizations. The partnerships were announced on February 27 within 24 hours leading to excitement within the LTC community. The first partnership was with Glory, an international kickboxing promotion company which was founded in 2012. While this may not affect our litecoin price prediction too much, its nice to see that LTC is gaining more and more visibility.
The collaboration will see Litecoin become the first official cryptocurrency of the premier stand-up combat league. According to the agreement, fans of Glory kickboxing will now have access to Litecoin as a payment option on the company’s online merchandising platform GLORYshop.com
The other partnership was with C&U Entertainment a K-Pop production company. The collaboration will see LTC promoted in the upcoming “Feel the K-Pop Concert” which is scheduled to take place on April 6 at the George Manson University.
According to the announcement, there will be ULTRA VIP tickets that will be purchased in LTC. The tickets will offer the best seating and experience. The Litecoin Foundation will also have a team on site that will be educating concertgoers on the power of LTC.
Both partnerships are enormous and are set to influence the price of LTC positively over the next few months.
Litecoin is designed to solve problems that hinder the Bitcoin Network. Therefore, it’s made to not inherit the scalability issues of Bitcoin. Litecoin is said to be four times faster than Bitcoin during transactions based on block design.
Such qualities make it the envy of merchants who are keen on adding a crypto payment option for their customers. Eventually, this advantage will lead to massive adoption that will push the price of Litecoin even higher.
Being an open-source project, Litecoin has enough room to introduce fresh ideas into the platform allowing it to occupy a higher position as the coin of choice.
Litecoin uses an improved Proof-of-Work (PoW) algorithm which in turn simplifies the mining operation.
Additionally, its technology has also seen Litecoin charge meager transaction fees compared to its rival, bitcoin. It endears Litecoin to more people looking to save on transaction fees.
We have started exploration towards adding privacy and fungibility to Litecoin by allowing on-chain conversion of regular LTC into a Mimblewimble variant of LTC and vice versa. Upon such conversion, it will be possible to transact with Mimblewimble LTC in complete confidentiality.
Litecoin is already an useful cryptocurrency, combining Litecoin with mimblewimble’s privacy protocol could easily improve Litecoin’s value, adoption and usefulness.
Confidential Transactions and Fungibility On Litecoin
Litecoin is also going to be introducing Confidential Transactions during this year. At least this is what the team behind Litecoin wants to do. With this implementation, the Litecoin community will have the possibility to protect its privacy and have a fungible digital asset to make transactions.
The announcement was made by Charlie Lee, the Founder of Litecoin, earlier this year on Twitter. He said that fungibility is the only property of sound money that is missing from Bitcoin and Litecoin.
It is possible to exchange fiat currencies with different individuals without having to be worried about whether the funds will be accepted or not. However, this is something that is currently not possible in different digital assets because all the transactions are registered on the blockchain. If there are digital assets that were used by money launderers or drug dealers, these would not be accepted by many exchanges and other users.
When the announcement was made official by Charlie Lee, a few days after, Litecoin skyrocketed from $32 to $45 in just a few hours. Since then, the virtual currency surged to $140 before declining again.
Litecoin (LTC) Price Prediction TradingView Analysis Updated August 1, 2020
For the LTCUSDT trading pair, the trader sees a formation of the third impulse wave in the 1D chart where the digital currency could be reaching a resistance zone close to $60. Then the fourth corrective wave will follow allowing LTC to move higher towards the fifth wave above $64 per LTC.
This comes after a recent breakout of a bullish descending wage formation that can also be seen in other altcoins such as EOS. Furthermore, there has been a golden cross in the Exponential Moving Average that confirms the breakout that the 7th largest digital currency experienced a few days ago.
The trader considers that Litecoin could face a historical resistance at around 63.13 USDT.
The LTC/USDT trading pair shows that Litecoin has been decreasing just below a very important resistance line located between $45,90 and $46,00. This shows that there is a strong resistance above here.
The analyst considers that from the current levels it is possible to continue falling rather than growing. LTC has already failed twice to surpass the aforementioned levels, which shows how week the digital currency is since March this year. However, if LTC breaks this level, we could see LTC going higher and moving towards the next resistance levels such as $61 and $83 per LTC.
Following an Elliot Wave scheme, this analyst considers that previous resistance levels have turned now support for Litecoin and previous support has turned resistance for this virtual currency.
He considers that we could see Litecoin coming back to the previous support. At this level, the analyst says that users should look for distribution in the market. These levels are currently ranging between $41.80 and $42.00. If LTC breaks above, then this is another analysis that we will have to perform.
Furthermore, the analyst suggests that there could be a retracement to the supply/demand channel and that the resistance and support schemes are following the Fibonacci 50% retracement levels.
Litecoin shows that it has been lagging behind other market participants in the last few weeks, which is something that analysts take into consideration when they make their analysis. This cryptocurrency has seen declining volumes and we could see a new income of funds.
This volume decline could be a great way to understand whether LTC is going to be breaking out of key resistance levels and moving higher towards $56.56, $63.27 and $72,75 per coin. This could happen in a bullish case. Meanwhile, LTC should continue with its local upward trend and remain above the support line.
The crypto analyst is looking at the LTCUSD chart and considers that we can see a counter-trend in a current upward rising channel that started in March after the massive crash.
At the moment we are at the support level of this channel, which is currently $42 USD pr LTC. If the price continues moving downwards, we could test $36 before rebounding.
The bullish case presented by the analyst shows an LTC price going to $51.5 and eventually testing the upper part of the ascending channel close to $56 in the coming days – including the first weeks of June.
Frequently Asked Questions (FAQ)
Who Created Litecoin?
Former Google engineer Charlie Lee created Litecoin. However, he sold and donated all his holding in 2017 to avoid conflict of interest as he led the platform.
When Was Litecoin Launched?
Litecoin was launched in October 2011 under the MIT/X11 license serving as an early Bitcoin spinoff. However, it decreased the block generation time to 2.5 minutes and increased the number of coins on the network to 84,000,000. It also uses a different hashing algorithm know as scrypt, whereas Bitcoin uses SHA-256.
Is Litecoin Decentralized?
Just like Bitcoin, Litecoin is fully decentralized with no single point of authority.
Is Litecoin Proof of Stake?
Litecoin uses Scrypt, a proof of work algorithm.
Is Litecoin a Good Investment?
We believe LTC is still a good investment, and in the short term, we don’t see the token losing its value. We can expect to see its price rise with time as cryptocurrencies gain popularity among masses.
Will Litecoin go up?
Our analysis shows that the price of LTC will go up soon based on technical fundamentals and the many positive developments going around the Litecoin platform.
Where to buy Litecoin?
Buy Litecoin using a credit card or debit card on Coinbase, BitPanda, Coinmama, and CEX.io. You can also buy LTC using a bank account or bank transfer on Coinbase, BitPanda, and CEX.io.
On Coinbase, Americans can use ACH transfer with 5-7 days wait while Europeans can use SEPA with 1-3 days wait.
There is no easy way to buy LTC using cash or PayPal, and one has first to buy a currency like Bitcoin and then exchange it for Litecoin. This can be done on Binance, Changelly, Poloniex, and many more.
Also, you can buy LTC using Skrill as BitPanda accepts Skrill payments.
It’s important to note that fees vary depending on the option you choose, so you might want to check that before you embark on buying Litecoin. Also, most importantly, have a wallet where you can store your coins after purchasing them since it’s not advisable to store coins on exchanges. Some of the best available wallets include Ledger Nano S and Trezor.
Is Litecoin Dead?
No, Litecoin is very alive and kicking. As we have seen in this article, the project is busy signing new partnerships and working on further improvements.
Is Litecoin Better Than Bitcoin?
Litecoin is known as the silver with Bitcoin being the Gold due to the many similarities and the fact that it’s a fork of Bitcoin. What Litecoin improved was the transaction time reducing it from ten minutes to around two and a half minutes.
Will Litecoin fail?
Litecoin has been around for a long time being one of the earliest cryptocurrencies, and over time has managed to maintain its status as one of the top ten cryptocurrencies by market cap. Given that its founder and the Litecoin Foundation is always hard at work to maintain the network and improve it, the likely hood of Litecoin failing is highly improbable.