LiteCoin price weekly analysis: A sluggish rebound
Doubts around the strength of LiteCoin with a sluggish recovery from midweek volatility.
- LiteCoin shows sluggish rebound after midweek volatility
- LitePay arousing interest in LiteCoin’s use as money
- Doubts over LiteCoin’s involvement with LitePay surface on Twitter
LiteCoin began the week trading in a consistent range giving hope to investors as LitePay continues development. Despite this seemingly good news LiteCoin (LTC) has shown sluggishness after the market-wide volatility experienced in midweek trading. Questions have been raised around LTC’s involvement with LitePay, causing doubts about LTC’s development as money.
LTC started the week trading in a consistent range between US$249.19 and US$229.66 over the period 14 to 16 January 2018, according to pricing data released by CoinMarketCap. That shows a price range suggesting some measure of stability. With midweek volatility across all cryptocurrency markets, LTC experienced a dramatic drop in price to as low as US$144.93 by the afternoon of 16 January.
Closing out the week at US$198.69 LTC has shown some sluggishness compared to its competitors. LTC has lost over 20% of its price from its week high of US$249.19. This seems high compared to Ethereum’s 17% drop, or bitcoin’s loss of only 12.7%. What this could suggest is a softening in market confidence for LTC.
Market capitalisation has also dropped over the week for LTC. Starting the week at US$13.6 billion LTC lost over US$5.7 billion of market cap during midweek volatility, before managing to return to US$10.9 billion to close out the week.
24-hour trading volume
In addition to a sluggish recovery from midweek volatility, LTC has shown restrained market interest with a noticeably lower 24-hour trading volume compared with the start of the week. LTC’s 24-hour trading volume began the week very consistently showing a range of only US$100 million dollars over 14 January. Only dropping slightly in the lead up to midweek volatility.
With the huge selloff the market saw over 17 January and then the next day’s rebound, 24-hour trading volumes were high, too. Rising almost by 50% LTC's 24-hour trading volume reached a week high of US$1.6 billion on 17 January. Since then 24-hour trading volume has been more restrained showing consistently lower averages which are closing out the week considerably lower than US$400 million.
It was reported during the week that LitePay is on track to deliver an LTC payments method for everyday use. Some doubts over the depth of this project continue, considering the distance shown from LTC’s founder, Charlie Lee. That distancing played out over Twitter with Lee noting it was not an LTC project.
It's not our project, but we work closely with them.
— Charlie Lee [LTC] (@SatoshiLite) January 10, 2018