Litecoin Steady, But Not Like it Used to Be

Like Bitcoin, Litecoin (LTC) appears to be stabilizing. Unlike Bitcoin, this is happening at unfamiliarly low levels. LTC is hugging

Like Bitcoin, Litecoin (LTC) appears to be stabilizing. Unlike Bitcoin, this is happening at unfamiliarly low levels.

LTC is hugging tightly to its latest $22 plateau, and back up to its 15 day moving average. Volatility has been progressively decreasing over the past 48 hours and LTC has held its ground, staving off the $21 floor quite handily during the entire period. Traders will find hope in these signals in the face of the more bearish behavior of late.

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Litecoin- Feb 2 chart
Litecoin- Feb 2 chart

However, while BTC is back in the safe confines of its familiar $940-950 range on MtGox, LTC has been conspicuously deficient in its recovery efforts. Its corresponding level of support was around $23.50. The divergence between the two coins is reflected in the LTC/BTC price. During the period of stability, LTC traded comfortably in the 28.5-29 mBTC range. Currently, it is trading at 27.5 mBTC.

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Speculation has been that traders are still concerned about security of Litecoin following the recent hackings into LTC mining pools and theft of coins. Litecoin supporters, however, have gone to great lengths in online forums to defend Litecoin’s security as superior to Bitcoin’s, although their arguments are mostly centered around threats posed by 51% attacks and the like- as opposed to pure hacking activity.

Another potential cause may be the continuing growth of other popular coins like Dogecoin and Nxt. In essence, they can render Litecoin as the neglected middle child: traders interested in altcoins are going with what’s young and hot, while those looking for more reputable and mainstream investment simply resort to Bitcoin.

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