In 2017, when crypto prices were at their peak, Charlie Lee made a very interesting comment about the price of Litecoin (LTC). He stated that anyone who could not afford to watch Litecoin (LTC) drop to $20 should not invest in it. True to his call, Litecoin is now trading in the $20 range, a massive drop from its 2017 highs. Though it might just have been a random call, Litecoin at its current price looks very interesting. There would be a good reason to believe that Litecoin (LTC) could have hit the bottom, or it’s very close to it.
One of the factors that support this assertion is the fact that Litecoin (LTC) is heavily tied to Bitcoin (BTC) in its development approach. Its price also tends to move very closely to that of Bitcoin (BTC). In essence, if Bitcoin has hit the bottom, then it’s possibly the same case for Litecoin (LTC). At the moment, Bitcoin (BTC) is holding steadily above the weekly 200-day moving average, which is a yearly support level. If this support holds up, then Bitcoin (BTC) could indeed have hit the bottom. In such a case, then Litecoin would possibly have bottomed out at the $20 price range, the price level that Charlie Lee spoke of in 2017. This makes Litecoin (LTC)’s current price, a relatively safe entry point for long-term investors.
However, even if Bitcoin (BTC) doesn’t hold above the 200-day moving average at $3100, the bottom wouldn’t be very far from it. Bitcoin (BTC) has a huge intrinsic value in terms of security, real market adoption usage, which means it can’t possibly drop to nothing. The same goes for Litecoin (LTC). Litecoin (LTC), like Bitcoin (BTC), has made tremendous progress in terms of adoption. It is one of the most adopted cryptocurrencies in the market. Litecoin (LTC) is also widely available on every exchange that Bitcoin (BTC) is listed on. This ease of accessibility makes Litecoin (LTC) a highly liquid cryptocurrency, which in itself is a source of value and stability. Litecoin has achieved this due to its strategic alignment with Bitcoin (BTC), and will ride with it back to the top. This strategic positioning comes from the idea of cooperation instead of competition with Bitcoin. This is a big deal because it opens doors to adoption for Litecoin, wherever Bitcoin is adopted. This close alignment with Bitcoin (BTC) also means that Litecoin (LTC) could see it grow in value as a Bitcoin sidechain once the Lightning network gains mainstream usage.
Litecoin is also supported by a strong community, which is a big source of value. Its developer team is also large and active in striving to make Litecoin (LTC) better. With such strong fundamentals, Litecoin (LTC) is without a doubt one of the cryptos to watch in 2019 based purely onfundamentals, and cryptos currently depressed prices.
Maybe the $20 range is the magical area, before a rebound that takes Litecoin (LTC) back to its all-time highs. But even if it is not, the downside risk for Litecoin (LTC) at current price is much lower than its upside potential. It will be an interesting 2019 for Litecoin.