Cryptocurrencies have had a phenomenal run over the last few decades. What began as a little experiment has developed into an industry worth over $2.6 trillion. The first cryptocurrency, Bitcoin, has a market capitalization of over $1.3 trillion. Other altcoins, such as Ethereum and Litecoin, have performed well over time. In this essay, we’ll investigate if Litecoin is a good long-term investment. yes we should invest in litecoin
What is Litecoin?
Litecoin, or LTC, is a peer-to-peer payment network that was formed by a blockchain initiative. The primary purpose of the coin was to offer a speedier, more efficient, and less expensive alternative to Bitcoin.
There were around 68 million LTCs in circulation at the time of writing. These currencies have a market valuation of more than $13 billion, making them the world’s 13th most valuable cryptocurrency.
Litecoin has become a relatively popular digital currency due to its high speed and low transaction costs. It now processes over 6,000 transactions each hour, and the number of active addresses has risen to over 360,000.
The major difficulty for Litecoin, like Bitcoin, is that it is not generally accepted by stores and online vendors. Because of the industry’s increased volatility, the majority of these companies have avoided the coin. we should invest in litecoin.
It also has to deal with the fact that it employs proof-of-work technologies. This means that fresh LTCs are generated by mining, which consumes a lot of energy. At a time when many individuals are concerned about climate change, the majority of them are opting for proof-of-stake cryptocurrencies like Cardano.
Litecoin and Bitcoin
Bitcoin and Litecoin have a lot in common. As a result of this attribute, the two cryptocurrencies have developed a close relationship. According to MacroAxis data, the two currencies have a 0.90 percent association relationship. This indicates that they have a tendency to travel in the same direction.
A cursory examination of their past performance indicates this. For instance, in May 2020, Litecoin reached an all-time high at the same time as Bitcoin reached an all-time high. Shortly after, the two cryptocurrencies had a significant drop before beginning to recover in July.
This connection exists for a variety of reasons. For one thing, many ordinary traders lack the cash required to purchase Bitcoin, which costs around $65,000. As a result, they seek out similar assets that are trading at a lower price. In this case, they choose for Litecoin, which shares many of the same properties as Bitcoin.
Another explanation for the connection between LTC and Bitcoin is that they were both created using the same technology and were among the first cryptocurrencies. As a result, many traders predict that, like Bitcoin, Litecoin will receive institutional adoption.
It is now possible to purchase Litecoin using a credit card as well as popular payment methods such as PayPal and Skrill. Many more altcoins cannot be purchased using similar methods.
As a result, since Bitcoin prices are projected to continue growing, Litecoin may do well as well.
Litecoin price technical analysis
The Litecoin price has been in a tight range in recent weeks, as shown by the 45-minute chart. The coin is currently selling at $196, which is almost 10% higher than its October low. The price is trending in the same direction as the 25-day and 50-day moving averages. It’s also around the Fibonacci retracement level of 50%.
It has developed an inverted head and shoulders pattern, for example. This pattern is usually a bullish sign in price movement research. As a result, the LTC is likely to continue climbing as bulls aim for the critical resistance level of $250. If the price falls below $180, this opinion will be invalidated. Invest in Litecoin.
Source: Bitcoin Warrior