Will Litecoin Double Again by the End of 2021?
Litecoin was developed and launched in 2011 by Charlie Lee and has been one of many prime ten cryptocurrencies in phrases of market cap for the main a part of the final decade. However, Litecoin’s market cap has not too long ago witnessed a downturn and it at the moment ranks at quantity 16, on the time of writing.
Litecoin, which serves as an alternative choice to Bitcoin, has sure vital variations that make it a extra enticing alternative. It has a quicker block era time which implies that transactions via Litecoin can occur a lot quicker when in comparison with Bitcoin. Further, Litecoin has a special hashing mechanism. Hence, 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 worth historical past, it has largely adopted the development marked by the worth motion of the cryptocurrency market as a complete. Until 2017, the worth of Litecoin was largely dormant just like different cryptocurrencies. However, it took off in 2017 due to the unprecedented bullishness of the cryptocurrency market, witnessing a rally of round 4000% in seven months that yr.
In 2020, Litecoin greater than tripled its market cap and touched a record-high of $388 in May however has seen a major drop since then.
Now, the query is whether or not Litecoin will return to those highs earlier than the tip of the yr, or not. To draw our conclusions, we’ve relied on knowledgeable experiences, elementary evaluation, in addition to technicals. Investors must also be aware that predicting the price of Litecoin is far more troublesome in comparison with different funding lessons reminiscent of equities and bonds.
Finder’s Panel Report
Finder carried out a survey of 42 fintech specialists concerning the future prospects of Litecoin. This survey discovered that almost all consultants consider that Litecoin will contact a worth level of $266 by the tip of the yr. This would mark beneficial properties of round 50% from present ranges ($177).
These findings had been just like different panels’ opinions on cryptocurrencies reminiscent of DogeCoin and Ethereum. DOGE is anticipated to hit $1.21 by 2025 whereas ETH is anticipated to the touch $4,500 by December 2021.
However, regardless that Litecoin is anticipated to witness worth beneficial properties over the course of the yr, the panellists consider that the digital asset goes to proceed shedding relevance to different cryptocurrencies. Most of them consider that Litecoin isn’t going to be again in the highest 10 cryptocurrencies in phrases of market capitalization.
Several of those panellists consider that Litecoin has been irreparably harm by Charlie Lee’s sale of his stake. A vote of no-confidence by the cryptocurrency’s personal founder might have harm the probabilities of Litecoin of being a severe contender in the cryptocurrency sport.
Litecoin’s future appears constructive when measured in phrases of its fundamentals. Litecoin, as has been talked about earlier, enjoys vital benefits over Bitcoin in phrases of the blockchain expertise backing it. Litecoin additionally costs decrease charges when in comparison with Bitcoin making the previous a superb various to the flagship cryptocurrency in the long run.
Further, Litecoin is witnessing growing market acceptance and was recently added to Bitpay’s funds service. This implies that customers of Bitpay can now transact utilizing Litecoin via the platform. With a rise in the variety of companions and widespread adoption, the worth of Litecoin ought to acquire tempo as we inch nearer in the direction of the tip of 2021.
Rather than simply getting used for speculative functions, Litecoin has the potential to turn out to be an actual digital forex accepted by retailers around the globe. If this occurs, then the long run worth of Litecoin may simply develop exponentially from present ranges.
Lastly, Litecoin has been famous to be much less risky when in comparison with different cryptocurrencies. This makes it a lovely funding alternative for buyers who’re extra risk-averse.
Technical components too must be thought of when judging Litecoin’s future near-term worth actions. Analysis has discovered that Litecoin faces a serious resistance stage across the $200 mark. Moreover, 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 yr.
Further, social metrics don’t appear to look too constructive for Litecoin. Social volumes and weighted sentiment are lagging considerably behind May ranges. Litecoin’s lively addresses (24-hours) have additionally witnessed a powerful drop.
Overall, this exhibits that in phrases of technicals, the outlook doesn’t appear constructive sufficient for Litecoin to double by the tip of the yr.
Litecoin’s worth has picked up once more over the previous month. If the broader cryptocurrency market stays bullish, Litecoin may see some vital beneficial properties by the tip of the yr. However, it’s extremely unlikely that Litecoin’s worth will double in this time-frame. Investors wanting in the direction of Litecoin might discover that it serves as a greater long-term funding fairly than for short-term buying and selling functions.
Image supply: Pixabay