LiteCoin price weekly analysis: this quiet achiever is a pillar of stability
LiteCoin is increasingly showing itself to be a raft of stability in an otherwise stormy cryptocurrency market.
LiteCoin price movements
LiteCoin (LTC) began the week at a promising US$257.11 showing its stability by closing out the week only less than US$15 lower as at the time of writing 10 January 2018. This price differential should give some investors some much needed settling after Charlie Lee announced the sale of his stake in LTC, which no doubt would have ruffled the feathers of more than a few investors.
While being relatively stable compared to other cryptocurrencies, LTC was not immune to its share of volatility posting a week high of US$320.78. That demonstrated a strong rebound after the week’s trough which occurred on 04 January at US$228.30.
The week in LTC’s market capitalisation has been somewhat deflating. LTC’s market cap started the week strongly at US$14.03 billion slouching slightly at the close of the week with a slump to US$13.24 billion.
While these figures show a surprising drop in the market capitalisation of LTC they hide an important event that occurred during the week. CoinMarketCap readjusted its accounting measure for evaluating cryptocurrencies and their global price. What this means is that roughly 30% of all global cryptocurrency trade which takes place on South Korean exchanges has been excluded from CoinMarketCap’s available data.
The effect this had on Litecoin and the overall market was to drastically reduce prices across the board and also measures of market capitalisation. That means that it is difficult to attach any significant meaning to correction in LTC’s market cap at this stage. As CoinMarketCap’s readjustment gets factored into the market, a clearer picture will develop.
24 hour trading volume
In terms of 24 hour trading volume, LTC had a subdued week opening the week trading US$1.24 billion worth of 24 hour trade, lowering a little to around US$930 million worth of trade in LTC across the day.
However, the week was not without high volumes. On Thursday 04 January, (the birthday of yours truly) 24 hour trading volume peaked at a high of around US$5 billion, as a period of sustained short selling saw the price of LTC drop just as much as its trading volume increased.
This is a good signal for LTC’s longevity for two reasons. First, speculative trading is not having a large impact on the fluctuations in LTC’s price. As a genuine contender as a medium of exchange or money, that is important for reasons of trade. Second, this increase in trading volume was not accompanied by a significant increase in transaction fees.
Transaction fees for LTC have remained under wraps for the remainder of the week meaning that for businesses to use LTC remains viable during periods of high trading volume.
Looking ahead at the price of LiteCoin
If the last week in LTC’s trajectory is anything to go by we can see a strengthening with some volatility which will be good for liquidity and speculative traders looking to enter the market. It can be assumed that as more time goes by more retailers are likely to adopt LTC as a method of payments. As this trend continues investors are likely to see sustained long term growth dividends resulting from the ongoing and increasing confidence in LTC.