The first quarter (Q1) and the better part of the second quarter (Q2) of 2018 has been the worst for Litecoin (LTC). When its value started to drop at the beginning of 2018, investors thought it was just a usual retracement especially due to the large leap that the cryptocurrency had made at the close of 2017.
The bearish trend has ended up going too far. At times, the crypto coin has acted like it wants to resume a bullish trend only to end up making major drops than before. This have forced investors to lose interest in the cryptocurrency and have opted to sell the LTC coins at a loss.
However, Litecoin (LTC) could be heading for better days ahead. Considering the factors that are currently at play, the value of the coin is expected to rise any time from now.
Below are some two prminnet factors that investors should anchor their hopes on.
- Litecoin (LTC) has become ovesrold
At the current state, the Litecoin is oversold.
The price of Litecoin has dropped sharply and there is a lot of market overreaction and panic selling. Almost every investor holding LTC coins is considering going short.
In financial markets, when an asset becomes oversold, the prices of the asset are expected to rebound back in a short while. Actually, the oversold condition only lusts for a very short while before the market breaks and the bearish forces are overcome by bullish forces. This is what is expected to happen to the Litecoin.
This is the best time for traders to buy the LTC at the current low prices. If one buys Litecoins at the current price, a rise in the prices would result to profits.
However, the rebound may not necessarily take the prices of the coin to its original level at the close of 2017, but the prices will of course move up. Therefore, for those holding the coin from December 2017, they will have to wait longer for the prices to recover that far.
- NYDFS green light for itBit to list Litecoin
itBit is one of the few crypto exchanges that are regulated to trade cryptocurrencies in the US by the New York State Department of Financial Services (NYDFS). Being a regulated crypto exchange, it is expected to attract a lot of crypto investors.
The recent itBit decision and the fact that NYDS has allowed them to go ahead and expand their crypto traded assets to include Litecoin (LTC) among some other crypto coins is expected to push the value of Litecoin higher due to the increased traffic of investors considering its oversold condition.