Litecoin Forming Strong Support Around $23

Litecoin’s price movements have closely mirrored those of Bitcoin as of late, as one may expect. Despite continued volatility, BTC

Litecoin’s price movements have closely mirrored those of Bitcoin as of late, as one may expect. Despite continued volatility, BTC has managed to keep a stable floor around $880 on MtGox. Litecoin too has been forming similar support patterns around the $23 level in correlation with BTC’s periodicity of establishment. The only potential exception took place during a very brief period of heavy selling one week ago, where LTC temporarily crashed to $20 under sudden conditions of demand shortfall. The cryptocurrency though instantly recovered to its support level.

LTC/USD 2-week chart. Source: Bitcoinwisdom.com
LTC/USD 2-week chart. Source: Bitcoinwisdom.com

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There should be more clues in the coming days as to the general mid-term direction of the digital currency. Currently, it is somewhat holding in a state of limbo between $23 and $26 and will probably need the next fundamental driver to propel it out of this range. One such driver can be the recent announcement from GoCoin that it now provides a platform for merchants to accept Litecoin as payment. This may stimulate further demand for LTC as it becomes only the second cryptocurrency to exhibit true tangible value for the exchange of goods and services. Merchants will be able to manage both BTC and LTC conveniently in one platform.

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Versus BTC, LTC has hovered close to 30 mBTC for the last 2 weeks, albeit with a behavior mimicking that of each respective currency vs USD. This validates BTC’s continued perception as the index of cryptocurrency and LTC’s role as the “commodity”, as its movement has been more exaggerated percentage-wise.

LTC/BTC. Source: Cryptocoincharts
LTC/BTC. Source: Cryptocoincharts

It has been said that Litecoin is “the silver to Bitcoin’s Gold”. One will recall the gains in physical silver in recent years as more amplified than gold, and the historical percentage gain for LTC is several-fold as that of BTC. Considering recent developments, it is reasonable to expect this trend to continue in the long term if LTC remains a viable currency.

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