Litecoin price weekly analysis 17 May: Litecoin doesn’t miss in the market smackdown
A tough week for Litecoin is testing the market's nerves.
- LTC is down by about 12.5% over the last seven days.
- It doesn't look like it has hit the bottom yet.
- Today has been positive, but it's too early to call recovery.
It's been a week of red candles for Litecoin, just as it has for almost every coin on the market. After sitting at the US$160 mark during the latter part of last week, LTC jumped on the same slide as almost every other major coin and slid down to the US$132 mark, dropping over a third of its value by late Saturday afternoon.
The price recovered into the mid US$140s and sat there until Tuesday when it made a steep climb into the US$150s before plummeting back into the US$130s. That steep climb was accompanied by a jump in trading volumes from US$419 million to around US$580 million with 24-hour volumes sitting at around US$340 million at the moment.
The price currently sits at a little under US$140 after a slight rise today of under 2%.
Some analysis at TradingView suggests there is still some more room for LTC to fall before it makes a recovery. In the view of at least one of their traders, that makes it a good coin to consider buying although the site's overall rating says sell. Interestingly, another analyst there said "the best thing to do in situations like this is to think like a contrarian and let the market prove itself. If it does prove strength, you should have a plan of action prepared. If it pushes below 125 decisively, then stand aside. If you are managing inventory, there is not much you can do except lighten your position if it is causing you stress. You can always get back in when the market stabilizes. Being mindful of the amount of risk you are exposed to should be your top priority".
The current movements in the market are a big test. But it's important to note that a year ago, if someone had told you LTC was trading at US$130, you would have been ecstatic. Back then, the price was around the US$25 mark, so we're looking at a 500% win at the moment. Even in just the last six months, the value has doubled and that takes into account the price explosion and collapse we saw in January.
One thing I do find a little surprising is that this week's Consensus event in New York hasn't produced any positive news to buoy the market.
Disclosure: At the time of writing, the author holds BTC, EOS, ETH, XLM, ETN, LTC, ADA and XRP.