Litecoin was created from Bitcoin in 2011 when developers believed Bitcoin was becoming centrally controlled by making the mining process complex. Litecoin came up with a solution where anybody can mine LTC with regular computers. The mining process of Litecoin has a complex algorithm that does not allow enterprise miners to gain the upper hand.
Litecoin has great potential in the market because it is a developed version of Bitcoin with a slightly different algorithm that is suitable for light transactions. Moreover, it offers faster transaction processing time compared to Bitcoin. Litecoin also uses ASIC miners very similar to Bitcoin. Once a miner verifies the transactions, the next block is created, and miners get LTC as a reward.
After a sharp downfall in the first two weeks of December, Litecoin has taken support at around $62. After facing resistance in the baseline of BB, it has formed a higher low, around $65. After a long bearish signal, MACD is trying to turn bullish; RSI is above 40, and candlesticks are forming around the baseline of BB.
All these technical indicators suggest an uptrend, at least for the short term. $76 will work as a strong resistance for the next few months. Though the histograms of MACD are still red, we think it will turn green within a few weeks, and the LTC price will spike.
On the lower side, $62 is strong support because it worked as resistance during the July-September consolidation. Will LTC sustain the support? Read our Litecoin predictions to know!
The LTC is forming a red candle on the weekly chart in the upper Bollinger Bands that suggests a consolidation for the long term with the support of around $52 and resistance of around $77.
On the long-term chart, most technical indicators, such as MACD and RSI, also reflect positive sentiment. It is the right time to accumulate more LTC for the long term.