LiteCoin price weekly analysis: Strong recovery, erratic trade
Litecoin has produced a mixed bag this week showing resilience but uneasing the market with erratic trade.
- Erratic trading volumes suggest price instability
- Strong price recovery from midweek sell-off
- No date set for LiteCoin payment network
Worryingly, there has been no confirmation of LitePay’s roll out for a LiteCoin (LTC) payments network. That network, which was slated for use in February 2018, is drawing close to the deadline. Despite that, there seems to be little action aside from the Twitter faithful.
A strong midweek sell-off would have raised eyebrows in the markets. Concerns would have been allayed as LTC managed to regain all of its losses and add almost another 10% on top.
Erratic trade in LTC over the week will be concerning markets, particularly as the week draws to a close and dowards pressure on LTC price seems to be coupled with a sharp drop in trading volume.
LTC began the week trading at US$163.51 and reached an early high of US$172.63 according to pricing data released by CoinMarketCap. In line with the broader cryptocurrency market, LTC lost serious value as midweek trading set in.
Losing more than US$60 from its price, it was looking like another rough week for LTC as it slumped to a week low of US$107.46. The drop in price was stymied by a big rally in trading which saw LTC regain its losses and then some.
As the close of the week was approaching LTC managed to reach a week-high of US$169.10 but seems to be experiencing downward pressure showing US$150.98, as at the time of writing.
LTC’s week in market cap has been similarly rough compared to its price. Starting the week with a respectable US$9 billion in early week trade, that soon evaporated and showed a greatly discounted market cap at US$5.9billion.
The discount was short lived and soon LTC had regained all that it had lost and added a little for good measure, reaching a week-high of US$9.3 billion.
A pattern of price drops with low trading volumes is appearing for LTC, suggesting ongoing price instability. As the week draws to a close, LTC’s market cap has levelled off to US$8.3 billion. As the new week gets underway we can see slack trading and downwards pressure on LTC.
24-hour trading volume in LTC has been erratic. Kicking off the week at around US$750 million, trading volume reached just over US$1 billion as an early rise began to give way to sustained losses.
Following the price trough, LTC’s trading volume showed a peak of US$1.18 billion and tapered off as the week progressed away from its price lows. There are some weak indicators surrounding LTC as the week closes out.
As at the time of writing trading volume has slackened of considerably showing a week-low of US$527 million worth of daily trade in LTC. In addition to this there seems to be downwards pressure on the price of LTC in response to that.