Litecoin Stays Above $122 Despite Strong Consolidation

The main problem with Bitcoin is the transaction time. Ex Microsoft employee Charlie Lee aimed to solve this issue with the introduction of Litecoin. Based on the BTC core code, Litecoin enhances many aspects of it. 

It is a peer-to-peer decentralized cash system that prevents any third-party interference in the process. It uses proof of work consensus with the Scrypt hashing algorithm. It comes with a block size of 2 MB and roughly takes 150 seconds to create a new block. Litecoin creates new blocks quicker, and it is suitable for handling small transactions. It can offer approximately 55 transactions per second which are better than Bitcoin. 

However, many other crypto technologies offer even faster transactions. Still, LTC is popular because it is the upgraded version of the world’s largest crypto BTC. The hard cap of LTC supply is 84 million, and moreover, it requires a small initial investment for mining.

Litecoin Price Chart

The LTC price is around $123 when we are writing this analysis. On the daily and weekly charts, the price is trading around the strong support level, which may break the level on either side within a couple of weeks.

According to the Litecoin price prediction, we think retail investors should avoid this coin now because if it goes downward, it may also break the $105 level. Besides that, RSI is around 50, and MACD is neutral, which does not signify strong bullishness. We think the LTC price will consolidate at that level, and the level could be anything in the range of $152-$100.

Litecoin Price Chart

On the weekly chart, Litecoin has been consolidating for the last nine months, and it will continue till the middle of this year. The world indices are down, so the top cryptocurrencies are bearish. We think it is not the ideal time for short-term investment. The combination of MACD and RSI reflects a bearish sign. The candlesticks are in the lower half of the Bollinger Band, which is also a negative sign. You should not invest in this coin as a retail investor until it shows momentum.

Litecoin has the potential to thrive in the crypto market, but it has not been reflected on the chart yet. It is the ideal chart for a long-term investment with a stop loss of $100 and a target price of $220. If the LTC coin decisively breaks the level of $155, it will be good for short-term investment with a target price of $220.

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