It’s not a very good day for altcoins. While Bitcoin has broken above $5500 and held above it, altcoins are dropping hard. However, even under current market conditions, there are altcoins that are holding up pretty well. For instance, looking at Litecoin on a larger time frame, it has been bullish for the last 3 months, and is only cooling down after a sustained bull run. It pushed up from a low of $21 and a few weeks ago, hit $99 on some exchanges. In essence, regardless of the market movements, Litecoin (LTC) was bound to cool off at some point. So, what does the future hold, in the short-term?
From a look at the weekly charts, Litecoin (LTC) could find support at $70 on the weekly 50-day moving average. This is a key support level where Litecoin (LTC), could stabilize at, in the short-term. If this level holds, the next move would highly likely be a bullish continuation, and one that could see Litecoin (LTC) break the $100 resistance.
There are several factors that support the possibility of Litecoin (LTC) breaking above this price level. For starters, with each passing day, Litecoin (LTC) gets closer to the halving in August. The Litecoin halving is likely to create FOMO around LTC, and play a significant role in pushing up the price in the medium term. However, the Litecoin halving is not just a matter of FOMO, it mathematically changes the supply dynamics of Litecoin (LTC). That’s because, the block rewards will much lower, hence cutting on the amount of Litecoin (LTC) entering the market. As this adjustment takes effect, amidst an ever growing demand for Litecoin (LTC), its price can only go up. That’s not forgetting that Litecoin has a low total supply of just 84 million. In essence, its long-term price trajectory is likely to be upwards.
Another factor that could give Litecoin (LTC) a push in the near-term is its addition to mainstream platforms like TD Ameritrade. TD Ameritrade is one of the largest stockbrokerage firms in the world, and there is information that it is testing Bitcoin (BTC), with other cryptos to follow. Given that Litecoin (LTC) is one of the cryptos that is listed almost everywhere that Bitcoin (BTC) is, there is no doubt that it could be the next one to make it to TD Ameritrade.
TD Ameritrade is one platform that could open Litecoin (LTC) to mass adoption by both institutional and retail investors. It will make it easy for mom and pop investors to get into cryptos like Bitcoin (BTC) and Litecoin (LTC) and drive up volumes.
With all these factors at play, it’s no hard to see why Litecoin (LTC) has a high chance of holding above the $70 support. Besides, Bitcoin (BTC), which would ordinarily put pressure on its price is bullish at the moment. Bitcoin is firm above $5500 and there is a high possibility that it could push above $6k. Such a push could see the entire market rise, and that includes LTC, which already in the middle of a bull market.