Despite Bitcoin’s rock-solid stability today, its crypto-counterpart Litecoin has fallen sharply, losing as much as 6% in falling from near $24 to $22.50 before returning to $23.
Like Bitcoin’s recent establishment of an impenetrable support level of $870 over the past 2 weeks, Litecoin had been following suit with its own around $23. It has tested this level several times over the past 2 weeks, only to rapidly and convincingly bounce back to the safety of its $23.50-$25 trading range.
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As BTC has been stable, LTC’s sudden drop is uncharacteristic after having closely followed BTC’s behavior over recent weeks, exhibiting more exaggerated swings than BTC during volatile trading and holding steady during periods of calm.
Versus BTC, LTC has dropped from 29 mBTC to below 28 mBTC, reflecting its loss vs USD.
The drop may have been triggered by reports of a hacking into the give-me-coin.com litecoin mining pool. Some participants reported theft of litecoins. The pool’s administration, aware of the issue, is reportedly reimbursing miners from its own pocket, although this may be insufficient to calm fears as to the viability of the cryptocurrency.
Most traders expect Litecoin to bounce back as it has done previously and are calling this a major buying opportunity. Should Litecoin trade below $22.50 for a prolonged period, it may signal the start of a fundamental decline.
(Chart Source: Bitcoinwisdom unless otherwise noted)