Litecoin lost 90% from its peak as it reached $50 after the first half of 2022. Is LTCUSD a Buy, Sell, or Hold on the recent dip? CAPEX looks at Litecoin's forecast for 2022 and beyond.
Litecoin was created to aid traditional payments and become an alternative to the payments systems. However, that did not stop crypto investors to speculate and trade Litecoin (LTC), as they do with any other cryptocurrency available on the market.
Litecoin was part of the crypto bull market, which lasted from mid-2020 to late 2021. Litecoin's price climbed from $50 to $412.96 during that period, an all-time high reached by Litecoin on May 10, 2021.
However, Litecoin was unable to scale this peak when the likes of bitcoin and ether hit record highs in November 2021.
More recently, Litecoin prices have plunged alongside the broader cryptocurrency market, losing over 90% within a year.
But what can we expect from Litecoin in the future? Will the LTCUSD price continue to decline in 2022? Will the Litecoin price surge or plunge in 5 years?
Litecoin Outlook: Where we are now
Litecoin (LTC) is a peer-to-peer cryptocurrency, which was created by Charlie Lee (an ex-Google employee) in 2011. It uses Bitcoin’s original source code. Litecoin was created to make cryptocurrency transactions cheaper to enable everyday crypto payments. We can observe this market trend continuing, as Bitcoin is used for long-term storage of value, while Litecoin is more commonly used for payments.
While Litecoin uses the same Proof-of-Work (PoW) mechanism, its much larger total supply (84 million) makes the mining prices much simpler. This translates to faster and cheaper transaction fees on the network. Litecoin was created to build the decentralized payment system that Bitcoin wanted to be, but some believe it is not anymore.
Litecoin’s price follows the general trends of the crypto market and Bitcoin’s price.
Related: How to Buy Litecoin
Litecoin's price reached a new all-time high in 2021 but has been dropping ever since.
At the beginning of 2021, the price of Litecoin was around $124. Like other crypto markets, Litecoin's performance has been volatile, as there are many factors that drive its volatility.
Although cryptocurrency is still not widely used for daily transactions, two prominent payment networks have started to allow its use. LTC saw a surge in acceptance of the cryptocurrency on PayPal on March 30th. It increased by almost 60% in just 17 days, from $194.47 to $310.61 on March 30th.
In April 2021, CoinShares Capital Markets, a digital asset manager, launched an exchange-traded product (ETP) offering backed by crypto. At the launch, one ETP was backed by 0.2 LTC. In May, Litecoin reached its new all-time value at $412.96 (May 10). However, as the crypto market crashed after that, LTC fell ever further and lost. It half its value on 19 May after trading at $294.61, and then fell to an intraday lowest of $151.17 within a matter of hours. Since then, the coin traded below $200.
On 10 August, Venmo, a payment app, announced that its 60 million users would now be eligible for cashback in Litecoin via its newly rolled-out "Cashback to crypto" feature. However, the announcement was not received with much excitement by the community, as it only rose by 12%, reaching $186.46 on August 22.
Over the past 12 months, Litecoin's value has fallen by more than 80%. This means that the assets are now in "crypto winter" with many other coins. However, it is important to note that Litecoin has always recovered from these events. This doesn't mean you shouldn't invest in Litecoin immediately. Litecoin might have a higher risk-to-reward ratio than other financial assets.
With 2022 already looking like another roller-coaster period for digital currencies, CAPEX looks at Litecoin's price predictions from best-rated websites and experts.
Litecoin Price Prediction 2022 and beyond
Litecoin continues to see steady developer activity. Litecoin is frequently used as a testing ground for Bitcoin development. This is yet another reason to believe that people will continue to flock to the ecosystem. Litecoin's close relationship to Bitcoin and the limited supply makes it valuable.
As the years go by, Litecoin's on-chain volume has been remarkable. While on-chain volume has fallen since the late 2021 bubble, it is still at a consistent level. This means that we are likely closer to the bottom than ever before. In terms of blocks, transactions on the Litecoin ecosystem have fallen. It is still well above historical norms. This suggests that Litecoin has a substantial interest in it and that it can survive in the future.
Litecoin Forecast 2022
According to WalletInvestor, Litecoin's price will rise from $51 to $93 by the end of the year. That makes LTC an outstanding investment. The long-term earning potential is 82%.
DigitalCoin predicts that the price of Litecoin will reach $73 by the end of 2022. The long-term forecast predicts that Litecoin will reach $106 by 2025.
The long-term forecast for Litecoin from Price Prediction shows that the price will rise between $80 and $94 in 2022, with an average price of $83 per LTC by the end of December 2022. They predict that the price of Litecoin could reach an average of $257 by the end of 2025.
TradingBeasts are not so optimistic with their Litecoin price predictions and say that Litecoin might not be the best investment in 2022. They predict that LTC will reach a maximum of $68 by the end of the year, and the average price of Litecoin in December 2022 will be $54. The maximum price predicted for the end of December 2025 is $79.
According to Long Forecast, Litecoin can reach the end of 2022 at around $28, and Litecoin’s average price by the end of 2025 could be around $36.
It's important to remember that analysts’ forecasts can be incorrect when predicting Litecoin prices. Analysts make projections based on a technical and fundamental analysis of the crypto's performance. However, past price performance does not guarantee future results.
You should do your research and remember that trading decisions are influenced by your attitude towards risk, market knowledge, and your tolerance for losing money. The consensus, when it comes to crypto, is to not invest more than you can afford to lose.
Our Litecoin Prediction Today
The bullish trend in LTC/USD prices began at the end of 2020 and continued throughout 2021. However, Litecoin now follows the general bearish market trend.
That is because LTC is closely related to Bitcoin. BTC has soared to $20,000 due to the same factors that have led to Litecoin's plummet.
The Federal Reserve cut interest rates to record lows in an attempt to protect the American economy from the pandemic. Quantitative easing (QE) was also implemented by the Fed, which saw trillions of dollars printed in cash.
These actions resulted in record-low bond yields and record highs for riskier assets. Stocks and cryptocurrency soared. The Fed is now doing the opposite. The Fed has increased interest rates and implemented quantitative tightening (QT). Investors are now abandoning more risky assets such as Bitcoin and Litecoin.
On-chain data also shows that Litecoin activity has dropped sharply over the past few months. This means that very few people hold Litecoin and use it for transactions.
The daily chart shows LTC's bearish trend over the last few months. During this sell-off, the coin crossed several key support levels, such as $92.11 or $100. The coin is still below the 50-day and 25-day moving averages, while the Relative Strength Index(RSI) remains at the neutral point of 50.
Therefore, Litecoin's downward trend will continue as long as it remains below the moving averages. The LTC will likely test the $40 support level until this happens.
While we can speculate about the potential price of Litecoin over the next months and years, the truth is that Litecoin still is a highly speculative investment. There are not much historical data to support these predictions. It is important to invest only what you are willing to lose and include some traditional investment instruments to build a strong portfolio.
Your investments should be small, and you should not place crypto investments above other financial goals, such as saving for retirement or paying off high-interest debt.
Litecoin Price Prediction 2025
There are indications that the crypto market is entering a new era.
There is no doubt that LTC's long-term price prediction will rise as there is still optimism about the currency attracting more attention.
Like Bitcoin, Litecoin has the same cyclical evolutions and the miner’s rewards get halved every four years. In 2022, the block rewards stand at 12.5 LTC. The next Litecoin halving is expected in August 2023, when the third Litecoin halving will take place and the block rewards will become 6.25 LTC.
As Litecoin becomes more scarce, it can cause a spike in price. However, as time goes by miners also experience more difficulty in mining Litecoin, which might keep away miners and slowly leave the network without much support.
Experts believe that this cryptocurrency is still strong, and it is very likely that the market cap and price of Litecoin will rise in the future. By 2025, Litecoin could reach an average price of $192.
Litecoin Price Prediction 2030
Are you expecting Litecoin to rise in value? The same applies to Litecoin price predictions as it does to weather forecasts. The further we go into the future, the harder it becomes to try to predict the price of Litecoin. The world of 2030 may be quite different from what we see now. What does 2030 hold for Litecoin?
Many prediction platforms predict that Litecoin's price will steadily grow by 2030. By 2030, it is expected that the maximum Litecoin value will be $434.
Is It Possible to Forecast the Price of Litecoin?
Many price predictions for Ethereum are flawed because they lack the necessary analytical support. Investors will always be attracted to a high price point, especially one that is on an upward price trend. Someone holding a cryptocurrency priced at $0.01 could easily believe that it will rise to $10,000 just because it sounds good.
The problem is that predictions can be made without any evidence or analysis. However, three types of analysis have been used in the financial world for a long time to try and forecast prices and the evolution of markets.
- Technical Analysis
- Fundamental Analysis
- Sentimental Analysis
Litecoin Forecast using fundamentals
Investors in financial markets use fundamental analysis to study and evaluate the variables that impact an asset’s price.
You can assess the intrinsic value of a cryptocurrency to determine if it is undervalued or overvalued. This can be achieved by analyzing qualitative factors like the state of the economy and cryptocurrency market conditions, as well as the management and market capitalization of crypto companies.
Fundamental analysis can help traders determine the price of a cryptocurrency based upon a wide range of information. This could be a great way to make long-term investment decisions.
How to conduct a Litecoin price prediction today using fundamentals?
Fundamental analysis is when you examine the fundamentals of cryptocurrency projects, from their market capitalization to the utility and value of the native token.
Do not confuse the fundamental analysis and technical analysis. Fundamental analyses of cryptos are more qualitative and less tangible than statistical trends like price charts or historical market data.
The following parameters can be used to help investors predict trends in crypto markets:
- Market capitalisation
- Total and circulating supply
- Token utility and use cases
- Community size
- The team of the crypto project
- The crypto's trading volume
- Crypto exchanges listings
- Partnerships with trusted institutions
- The latest news about the coin
- Government rules and regulations
It is important to remember that fundamental analysis can only give you an overview of cryptocurrency investments. You can better understand the project and the future changes in cryptocurrency prices by looking at all the information. To get a better picture, you can also refer to the company’s whitepaper.
You can also examine blockchain metrics which provide crucial information about a cryptocurrency's technology and processes.
Litecoin Forecast using technical analysis
Technical analysis uses historical price charts and market statistics to examine and anticipate price changes in the financial markets. It is founded on the concept that if a trader can recognize historical market trends, they may anticipate future price trajectories accurately.
Whereas fundamental analysis focuses on an asset's 'real value,' considering both external and intrinsic elements, technical analysis is only based on an asset's price charts. To anticipate future movements, all that is required is the recognition of patterns on a chart.
The ability to recognize price trend cues in a market is an important part of any trading strategy. All traders must devise a strategy for determining the optimal entry and exit points in a market and using technical analysis tools is a popular technique for doing so.
Technical analysis software is now so widely utilized that many people believe it has established self-fulfilling trading rules: As more traders use the same indicators to find support and resistance levels, more buyers and sellers will congregate around the same price points, repeating the patterns.
In general, technical analysts look at the following broad types of indicators, formations, and theories:
- Price trends (trendlines, channels, Elliott Waves, Dow Theory)
- Chart patterns (double tops and bottoms, head and shoulders, triangles, wedges)
- Price action (pin bar, inside and outside bars, and different candlesticks chart patterns like Doji candle)
- Trend following indicators (moving averages, Ichimoku, Parabolic SAR, ZigZag, ADX)
- Volatility indicators (Bollinger bands, ATR)
- Oscillators (RSI, MACD, CCI, Stochastic)
- Support and resistance levels (Fibonacci retracements, pivot points)
The 50-week moving average represents one year of price action because there are 50 weeks in a 'market year' (i.e., 52 weeks in a calendar year and the NYSE (New York Stock Exchange) and other exchanges usually have ten days off for holidays = 50 weeks).
A moving average is a technical indicator that market analysts and investors may use to determine the direction of a trend. It sums up the data points of a cryptocurrency over a specific timeframe and divides the total by the number of data points to arrive at an average. It is called a “moving” average because it is continually recalculated based on the latest price data.
Litecoin's chart shows how well the Moving Average acts as a dynamic trendline, offering valuable support and resistance points.
Litecoin had a breakout below $180 and continued to push lower. A breakout trader would use this as an opportunity to jump on the train and place their stop above the high of the consolidation.
Litecoin Price Prediction Using Market Sentiments
In finance, the term "sentiment" refers to a viewpoint or opinion about a market's condition. The sentiment of crypto market investors towards the asset is a description of their general emotions and attitudes. It reflects the collective psychology of all those involved in trading and developing cryptocurrency.
How investors feel about cryptocurrency can have a tangible impact on market cycles and the price. It can have serious implications if enough traders act on the ideas, thoughts, and feelings they share, regardless of whether they are based upon real-world data. This is evident in how tweets by Elon Musk have impacted Bitcoin's price (a bullish sentiment).
For analyzing the sentiment of cryptocurrency markets, there are many statistics you can use. The following statistics provide vital information about the movement and trajectory of cryptocurrency assets: funding rates, sentiment indices, social media, and community analysis, and whale monitoring.
The funding rates are the monthly payments that traders receive based on price differences between the spot price of currencies and tokens and the price difference between cryptocurrency perpetual contracts. Positive funding rates indicate a bullish market.
A sentiment index is used to predict whether investors will act fearfully or greedily. It can be affected by volatility, market momentum, and investor responses to surveys. A fearful market can be an opportunity to buy if it is managed correctly. Conversely, a greedy market means that it is a good moment to sell.
Another crucial aspect for assessing sentiment in crypto markets is the community’s activity on social media, especially Twitter and Telegram. Investors would look for an active social network with meaningful interaction across platforms.
Whale monitoring is the process of keeping an eye out for big crypto players. A cryptocurrency whale is an investor who holds large-value transactions on multiple blockchains is called. Whale watchers spot major market participants' trades and trade accordingly.
Litecoin Historical Prices
Litecoin is a fork from Bitcoin, and that’s why major price fluctuations patterns of Bitcoin share similarities with the price of Litecoin. Although there are few correlations between Bitcoin and Litecoin, the former started with a slower momentum. It has been a steady performer over the past years, in between Bitcoin and Litecoin. Although the bull cycle has not been aggressive, it has been very potent for the price of Litecoin.
The mining reward event that hosted Litecoin's price surge is also to blame. The peak in December 2017 was $375.29. In January 2015, the price dropped to an all-time low at $1.11. The price of Litecoin has been fluctuating ever since. The pandemic has thrown most cryptocurrencies into chaos, and Litecoin (LTC) is not an exception. However, it has managed to survive the vulnerabilities.
Prior to 2019's halving, Litecoin traded at $140 per LTC coin. This was half of its previous high and a 600% increase from its lowest price.
Another pullback saw Litecoin reach $35 in late 2019. However, after a lower low, the future price of Litecoin is only expected to rise from here.
Litecoin rallied in 2020 and the cryptocurrency attempted to make a new record for 2021. These results have been mixed. According to CoinMarketCap, Litecoin has set a record in May 2021 ($412). Litecoin's long-term outlook and price trajectory are strong, despite the potential top formation and corrections.
In January 2021, after being rejected at the highs, Litecoin was traded at $134 per LTC.
In April 2022, Litecoin reached a high price of $129.31. But then things started to fall. Things got worse after China imposed a crypto ban. The price dropped to $102.25 on April 12, 2022. LTC hit $114.22 on April 20, but it dropped again to $100 in May.
LTC could not escape the chaos caused by the UST de-pegging and the collapse of Terra blockchain, so its price plummeted to around $50, the lowest since 2020.
LTC and many other cryptos were caught in a bearish market after withdrawals from Celsius crypto lending platform were canceled. It fell to a low point of $40.68 on June 14. It closed the month at $53.65, albeit with some peaks and lows.
LTC was close to this level for the first week of July, but it fell below that figure during a brief bull run on July 10, which saw it rise to $54.88, but it soon dropped again.
There are just under 70.7 million LTC in circulation, out of an overall supply of 84 million. The market capital sits just below $3.6bn.
Is Litecoin worth buying in 2022?
The data shows that it's profitable to invest in Litecoin long-term from a price perspective. The Litecoin forecast over a 5-year period predicts that Litecoin could reach a maximum of $217 per LTC, according to WalletInvestor.
How high can Litecoin go in 2022?
Most cryptocurrency experts and big investments have moderate predictions for Litecoin’s price in 2022. Some of the most optimistic forecasts are $161, for the end of 2022, belonging to WalletInvestor.
Will Litecoin crash in 2022?
While the price of Bitcoin will continue to experience volatility in 2022, most forecasters have not been so optimistic. While Litecoin will not crash in 2022, its growth might not be attractive to those looking to make quick gains from their investments.
Does Litecoin have a future?
By the end of 2022, as per LTC price predictions, the LTC’s price is estimated to hover around $71. Many Litecoin price predictions favor the positive foreseeable future of Litecoin cryptocurrency compared to other cryptocurrencies.
What will Litecoin be worth in 5 years?
The Litecoin supply is limited to 84 million, and 70 million Litecoins have already been mined. It is expected that the price of Litecoin will experience a steady rise in the next 5 years and could reach $200 by 2027.
What Litecoin will be worth in 2025?
Considering most expert predictions, the price of Litecoin could reach around $192 by 2025.
What Litecoin will be worth in 2030?
Considering expert predictions, the price of Litecoin could reach around $434 by 2030.
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