The Litecoin price is bouncing back after crashing by more than 13% in the past two days. The LTC is trading at $226, which is 7.80% above the lowest level this week. Its market value has recovered slightly to more than $14 billion, making it the 9th-biggest digital currency in the world.
What happened: Litecoin is one of the oldest digital currencies in the world that was established in 2011. It is a peer-to-peer digital currency that has a supply limit of 84 million coins.
In the past 12 months, the LTC price has surged, helped by the rising interest in digital currencies. This has seen its price rise by more than 400% in this period. Also, it has risen since, like Bitcoin Cash, it is often seen as an alternative to Bitcoin. Since it is trading at $225, one can buy more coins than Bitcoin.
Still, the biggest concern for Litecoin is that the volume of usage is relatively low. Indeed, while many companies are starting to accept digital currencies, very few are accepting LTC. Therefore, Litecoin’s recent rally is mostly because of fear of missing out and its role as a Bitcoin alternative.
Litecoin price prediction
On the daily chart, we see that the LTC price surged to the year-to-date high of $246 in February. Since then, it has struggled to move above this level. Also, we see that it has formed a W pattern that is shown in green. In most cases, this pattern is usually a sign of potential reversal. Further, the currency remains above the important ascending trendline that is shown in red. It is also slightly above the moving averages.
Therefore, in my view, the outlook for the Litecoin price at this stage is neutral. The bullish trend will continue if the price manages to move above the YTD high of $246. Also, the price will remain in a bullish trend so long as it is above the ascending trendline. A drop below the lower side of the W pattern and the rising line will be a bearish sign.
LTC price chart