Will Litecoin Double Again by the End of 2021?
Litecoin was developed and released in 2011 by Charlie Lee and has been one of the top ten cryptocurrencies in terms of market cap for the major part of the last decade. However, Litecoin’s market cap has recently witnessed a downturn and it currently ranks at number 16, at the time of writing.
Litecoin, which serves as an alternative to Bitcoin, has certain significant differences that make it a more attractive choice. It has a faster block generation time which means that transactions through Litecoin can happen much faster when compared to Bitcoin. Further, Litecoin has a different hashing mechanism. Hence, mining Litecoin is a far simpler process when compared to the complicated and advanced Bitcoin mining process.
Over the course of Litecoin’s price history, it has largely followed the trend marked by the price movement of the cryptocurrency market as a whole. Until 2017, the price of Litecoin was largely dormant similar to other cryptocurrencies. However, it took off in 2017 thanks to the unprecedented bullishness of the cryptocurrency market, witnessing a rally of around 4000% in seven months that year.
In 2020, Litecoin more than tripled its market cap and touched a record-high of $388 in May but has seen a significant drop since then.
Now, the question is whether Litecoin will return to these highs before the end of the year, or not. To draw our conclusions, we’ve relied on expert reports, fundamental analysis, as well as technicals. Investors should also note that predicting the price of Litecoin is much more difficult compared to other investment classes such as equities and bonds.
Finder’s Panel Report
Finder conducted a survey of 42 fintech specialists about the future prospects of Litecoin. This survey found that most experts believe that Litecoin will touch a price point of $266 by the end of the year. This would mark gains of around 50% from current levels ($177).
These findings were similar to other panels’ opinions on cryptocurrencies such as DogeCoin and Ethereum. DOGE is expected to hit $1.21 by 2025 while ETH is expected to touch $4,500 by December 2021.
However, even though Litecoin is expected to witness price gains over the course of the year, the panellists believe that the digital asset is going to continue losing relevance to other cryptocurrencies. Most of them believe that Litecoin is never going to be back in the top 10 cryptocurrencies in terms of market capitalization.
Several of these panellists believe that Litecoin has been irreparably hurt by Charlie Lee’s sale of his stake. A vote of no-confidence by the cryptocurrency’s own founder may have hurt the chances of Litecoin of being a serious contender in the cryptocurrency game.
Solid Fundamentals
Litecoin’s future looks positive when measured in terms of its fundamentals. Litecoin, as has been mentioned earlier, enjoys significant advantages over Bitcoin in terms of the blockchain technology backing it. Litecoin also charges lower fees when compared to Bitcoin making the former a good alternative to the flagship cryptocurrency in the future.
Further, Litecoin is witnessing increasing market acceptance and was recently added to Bitpay’s payments service. This means that users of Bitpay can now transact using Litecoin through the platform. With an increase in the number of partners and widespread adoption, the value of Litecoin should gain pace as we inch closer towards the end of 2021.
Rather than just being used for speculative purposes, Litecoin has the potential to become a real digital currency accepted by merchants around the world. If this happens, then the future value of Litecoin could easily grow exponentially from current levels.
Lastly, Litecoin has been noted to be less volatile when compared to other cryptocurrencies. This makes it an attractive investment choice for investors who are more risk-averse.
Tricky Technicals
Technical factors too need to be considered when judging Litecoin’s future near-term price movements. Analysis has found that Litecoin faces a major resistance level around the $200 mark. Moreover, the resistance is further exacerbated since $200 is also a major psychological block.
In case Litecoin manages to cross the $200 mark, it may see a period of high growth by the end of the year.
Further, social metrics do not seem to look too positive for Litecoin. Social volumes and weighted sentiment are lagging significantly behind May levels. Litecoin’s active addresses (24-hours) have also witnessed a strong drop.
Overall, this shows that in terms of technicals, the outlook does not seem positive enough for Litecoin to double by the end of the year.
Wrap Up
Litecoin’s price has picked up again over the past month. If the broader cryptocurrency market remains bullish, Litecoin could see some significant gains by the end of the year. However, it is highly unlikely that Litecoin’s price will double in this time frame. Investors looking towards Litecoin may find that it serves as a better long-term investment rather than for short-term trading purposes.
Image source: Pixabay
Will Litecoin Double Once more by the Finish of 2021?
Litecoin was developed and launched in 2011 by Charlie Lee and has been one of many prime ten cryptocurrencies when it comes to market cap for the foremost a part of the final decade. Nevertheless, Litecoin’s market cap has not too long ago witnessed a downturn and it presently ranks at quantity 16, on the time of writing.
Litecoin, which serves as an alternative choice to Bitcoin, has sure important variations that make it a extra engaging alternative. It has a quicker block era time which signifies that transactions by Litecoin can occur a lot quicker when in comparison with Bitcoin. Additional, Litecoin has a distinct hashing mechanism. Therefore, mining Litecoin is a far less complicated course of when in comparison with the sophisticated and superior Bitcoin mining course of.
Over the course of Litecoin’s value historical past, it has largely adopted the pattern marked by the worth motion of the cryptocurrency market as an entire. Till 2017, the worth of Litecoin was largely dormant much like different cryptocurrencies. Nevertheless, it took off in 2017 because of the unprecedented bullishness of the cryptocurrency market, witnessing a rally of round 4000% in seven months that 12 months.
In 2020, Litecoin greater than tripled its market cap and touched a record-high of $388 in Could however has seen a big drop since then.
Now, the query is whether or not Litecoin will return to those highs earlier than the tip of the 12 months, or not. To attract our conclusions, we’ve relied on professional reviews, elementary evaluation, in addition to technicals. Traders also needs to notice that predicting the worth of Litecoin is way more troublesome in comparison with different funding lessons equivalent to equities and bonds.
Finder’s Panel Report
Finder carried out a survey of 42 fintech specialists in regards to the future prospects of Litecoin. This survey discovered that almost all consultants imagine that Litecoin will contact a value level of $266 by the tip of the 12 months. This may mark good points of round 50% from present ranges ($177).
These findings had been much like different panels’ opinions on cryptocurrencies equivalent to DogeCoin and Ethereum. DOGE is anticipated to hit $1.21 by 2025 whereas ETH is anticipated to the touch $4,500 by December 2021.
Nevertheless, although Litecoin is anticipated to witness value good points over the course of the 12 months, the panellists imagine that the digital asset goes to proceed shedding relevance to different cryptocurrencies. Most of them imagine that Litecoin isn’t going to be again within the prime 10 cryptocurrencies when it comes to market capitalization.
A number of of those panellists imagine that Litecoin has been irreparably damage by Charlie Lee’s sale of his stake. A vote of no-confidence by the cryptocurrency’s personal founder might have damage the possibilities of Litecoin of being a severe contender within the cryptocurrency sport.
Strong Fundamentals
Litecoin’s future seems to be constructive when measured when it comes to its fundamentals. Litecoin, as has been talked about earlier, enjoys important benefits over Bitcoin when it comes to the blockchain expertise backing it. Litecoin additionally costs decrease charges when in comparison with Bitcoin making the previous different to the flagship cryptocurrency sooner or later.
Additional, Litecoin is witnessing rising market acceptance and was not too long ago added to Bitpay’s funds service. Because of this customers of Bitpay can now transact utilizing Litecoin by the platform. With a rise within the variety of companions and widespread adoption, the worth of Litecoin ought to acquire tempo as we inch nearer in direction of the tip of 2021.
Quite than simply getting used for speculative functions, Litecoin has the potential to change into an actual digital foreign money accepted by retailers all over the world. If this occurs, then the longer term worth of Litecoin may simply develop exponentially from present ranges.
Lastly, Litecoin has been famous to be much less unstable when in comparison with different cryptocurrencies. This makes it a pretty funding alternative for traders who’re extra risk-averse.
Tough Technicals
Technical elements too have to be thought of when judging Litecoin’s future near-term value actions. Evaluation has discovered that Litecoin faces a serious resistance stage across the $200 mark. Furthermore, the resistance is additional exacerbated since $200 can also be a serious psychological block.
In case Litecoin manages to cross the $200 mark, it might see a interval of excessive development by the tip of the 12 months.
Additional, social metrics don’t appear to look too constructive for Litecoin. Social volumes and weighted sentiment are lagging considerably behind Could ranges. Litecoin’s energetic addresses (24-hours) have additionally witnessed a robust drop.
Total, this exhibits that when it comes to technicals, the outlook doesn’t appear constructive sufficient for Litecoin to double by the tip of the 12 months.
Wrap Up
Litecoin’s value has picked up once more over the previous month. If the broader cryptocurrency market stays bullish, Litecoin may see some important good points by the tip of the 12 months. Nevertheless, it’s extremely unlikely that Litecoin’s value will double on this time-frame. Traders wanting in direction of Litecoin might discover that it serves as a greater long-term funding fairly than for short-term buying and selling functions.
Picture supply: Pixabay
