In times of economic instability, investing in digital assets is particularly worthwhile. Read more about how to invest in Litecoin in the LTC/USD chart article.
In order to make a profit, you need to know what's ahead for LTC. Read how to predict LTC trends, the factors influencing them, and how much the altcoin will be worth in the future.
Litecoin appeared more than 10 years ago, and all this time it was often compared to Bitcoin. After all, these digital assets do have a lot in common.
They have no central authority, and they operate using an open-source encryption protocol.
Nevertheless, there are differences too, so Litecoin cannot be considered a BTC copy.
To start with, LTC mining needs less energy compared to Bitcoin. That is why Litecoin is considered to be a lightweight version of BTC. Apart from that, they have different mechanisms when it comes to creating new blocks in the blockchain. Bitcoin has SHA-256, while Litecoin has a more advanced Script technology. Litecoin has a higher transaction speed. One block is mined in 2.5 minutes, while in the BTC network, it takes 10 minutes. Additionally, these cryptocurrencies have a different number of available coins. Litecoin has a limited supply of 84 million coins, whereas only 21 million BTC can be mined. What is more, LTC developer Charlie Lee never had the intention to dethrone BTC. On the contrary, the new digital asset was meant to take all the best tech features of BTC and get rid of its weaknesses. Cheliee Lee managed to do so. Nowadays, crypto enthusiasts value LTC not only because of anonymity and high transaction speed. They also highly appreciate its security and accessibility thanks to low commissions
At the time of writing the article, LTC was trading at $101.5. Over the years, like other coins, LTC has experienced periods of boom and decline.
After its very creation, the LTC price did not exceed $5. Only in 2013, the quotes rose to almost $40 per coin.
After that, the price plunged again. For example, in 2015, the coin was estimated at a record low of $1.15.
A new explosive growth took place in 2017 thanks to a strong rally in the entire crypto market. Its price surged to $355. But by the end of 2018, the altcoin was trading at $25. For the next two years, the quotes remained in the range of $30 - $137. Despite the coronavirus pandemic, LTC tripled in price in 2020 and ended the year at $129.
In 2021, the price soared to a record high of $355. This happened in the spring but in the summer, a sharp drop occurred.
After the correction in the late autumn of 2021, LTC was trading roughly at $146.
In general, last year was the defining one for LTC and all digital assets. In the spring, the capitalization of the crypto market exceeded $2 trillion for the first time in history. In autumn, it rose to $3 trillion.
In the first half of 2022, altcoin maintained a downtrend. Despite sharp fluctuations, the coin becomes cheaper more often than its gets expensive.
Like other cryptocurrencies, Litecoin is rather volatile. Coins could climb markedly not only in weeks, months but also within one day.
That is why traders should react promptly to any market changes. If you want to open only profitable trades, you need to have a forecast for LTC movements.
On March 10, Litecoin was trading at $106.92. The highest price by the middle of the day was $101.5. The predicted exchange rate at the close of the trading session totaled $101.1.
On March 11, the consensus forecast showed an increase in the average price to $102.3.
How to predict the short term movements of Litcoin
There are many tools for making forecasts. Let's focus on some of them. The first one is technical analysis. It helps traders determine what events in the past affected the quotes. Thus, certain patterns may occur again in the future and lead to a similar result. The main tools are charts and mathematical calculations.
Thus, the technical analysis shows the quote movements within a certain period of time, for example, during a week, a day, an hour, or even a few minutes.
The second tool is fundamental analysis. It is quite useful if you want to predict the LTC price in the medium and long term.
Analysts study the data on the cryptocurrency more carefully, taking into account macroeconomic indicators as well as the upside or downside potential of the crypto asset. After that, they make a forecast for months and even years.
In other words, technical analysis is a perfect tool for those investors who prefer short-term trades. Fundamental analysis is quite effective when it comes to long-term investment.
Nowadays, there are many theories, methods and ways of predicting the movements in the crypto market. Analayts recommend using a combination of various methods so that each trader can develop their own strategy. Such an approach is necessary because luck is not enough for speculators to succeed in trading. At the same time, you need to understand that any forecast is just a recommendation on how to act. The crypto market is very sensitive to both external and internal factors. Some of them are simply impossible to foresee.
As we have already told, cryptocurrencies are vulnerable to various events and circumstances. Let's focus on the most significant ones.
The LTC price may be affected by demand for coins. The higher it is, the more expensive altcoins are and vice versa.
Large institutional investors have a big impact on the crypto market. When they invest in Litecoin, other traders begin to do the same. As a result, coins become more expensive. Fresh news also impacts market sentiment as well as digital coins. Information about hacker attacks may lead to a significant drop in coins, while news about some tech innovations, on the contrary, could trigger an upward movement. For example, in September 2021, LTC climbed to $235.3 from $175.1 in a few hours amid Walmart's statement about cooperation with the cryptocurrency. On the same day, Walmart debunked rumors and the quotes returned to the previous level. Although there are currently more than 7,000 cryptocurrencies in the world, bitcoin remains the king of the crypto market. Its dynamic determines the trend for other coins. All coins correlate with each other. When BTC rises, other digital coins follow suit, including LTC.
Apart from these factors, its value is also impacted by:
In the first months of 2022, Litecoin was losing ground against the US dollar due to a pullback after a successful 2021 and the events in Ukraine
Despite bearish factors, analysts are confident that LTC has an upside potential.
TradingBeasts analysts assume that 2022 could be even more successful for Litecoin than the previous. In their opinion, by the middle of the year, the coin may rise to $138 and by the end of the year, it is likely to amount to $145. Wallet Investor and LongForecast are even more optimistic. According to their estimates, in 2022, LTC will grow to $258 by the middle of the year and $278 by the end of the year. Some economists are betting on an increase to $320 in a year
What to expect from LTC in 2022
|Average price, $
Average price, $
Despite the high volatility and potential woes, the altcoin is likely to grow higher in the long run.
According to the most pessimistic forecasts, in 2023, LTC will be able to exceed $250. Bulls expect this crypto asset to reach $330-350.
In 2023, miners will get 6.25 coins instead of 12.5 for each block. Halfing usually leads to a rise in the crypto asset.
It may boost demand for LTC not only next year but also in the long term. By 2027, the average LTC price is likely to grow to $460.
The estimated value of LTC for the next five years
Crypto experts are optimistic about Litecoin. The coin has potential, which means more investors will find it attractive.
Functionality is the main advantage of LTC. So, it may well secure its position as a fast, inexpensive, and reliable means of payment.
The altcoin has proven to be an attractive investment instrument. Over the past five years, it has strengthened by almost 2,500%.
Besides, this crypto asset is constantly evolving. Its developers work hard to make it a technically advanced solution and focus on its marketing strategy. If you decide to join the community of LTC investors, the IFXBIT crypto exchange could be your guide. The platform guarantees the transparency of transactions, the safety of assets, and the convenience of trading. Other articles: “Where to buy Litecoin with WMZ” “All about Litecoin wallets” “Checking LTC transactions” “Where and how to exchange LTC for fiat” “Miner for Litecoin”