Even as the sky has come crashing down on Bitcoin along with most cryptocurrencies, Litecoin (LTC) is handling it pretty well. Usually, Litecoin and its alt peers experience an amplified swing in value whenever major market moves hit Bitcoin. During this round, however, not only is LTC bucking this trend, it is even weathering the storm and outperforming BTC at times.
Litecoin is currently trading at $18.50. Granted, it’s down 13% from its pre-fall plateau of around $21. And it has once again plunged to new lows in 2014, the likes of which it hasn’t seen since the great crash in December, now testing the $17.60 mark on a couple of occasions. But under similar situations in the past, Litecoin would have fared far worse. Considering Bitcoin’s drop of roughly 14% (and far worse on MtGox), Litecoin should be off by 25-35%.
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This time around however, the market feels that this is mostly a Bitcoin specific problem- not a crypto problem. If some exchange would be experiencing similar such problems with Litecoin, LTC can easily be down by 25-35%. Furthermore, there is no intrinsic problem even within Bitcoin, as its declines across the board are merely reflections of panic-driven contagion spreading from MtGox.
The best indicator of LTC’s resilience has been its performance against BTC. LTC is currently trading at 26 mBTC, a level discussed here several times during its decline. It has been here before. It really hasn’t dipped much lower, only briefly testing the 25.3 mBTC mark during a couple of moments of wild trade. In fact, LTC is showing flat and sometimes positive behavior versus BTC during the current downswing.
Expect Litecoin to easily make a strong comeback back to its $20-21 range, possibly higher, in the days following closure on the MtGox issue.