The past two years have been very tough for Litecoin (LTC), a cryptocurrency that is often referred to as the silver to Bitcoin’s gold, because the bears have been dominating the market throughout the whole period. Until recently, the Litecoin price has been doing nothing but sliding downhill as it traveled from the all-time high at $373 all the way to the $40 region, and by now has recovered only 29% of that astronomical loss.
LTC all-time chart
A glance at the Litecoin historical chart would be enough to understand that despite the fact that the buyers have driven up the price of LTC in USD by 170% since the dawn of the year, and by 32% to the upside in the past 30 days, the progress of which is depicted on the chart below, the Digital Silver remains buried deep in the zone controlled by the bears.
Right now, Litecoin is priced at $108, the result of last week’s 31% bullish run that occurred in the USD pair, though LTC has also been doing well against the two dominant cryptocurrencies: 5% to the upside in a month against BTC and the 8% gain against ETH. As for Litecoin’s market capitalization, it has also recovered to $7 billion after being kept under $4 billion by persistent sellers for almost the entire duration of 2020.
30-days LTC chart
In the meantime, the altcoin’s older brother - Litecoin is a hardfork of Bitcoin - has been crushing one all-time high after another, having embarked on a price discovery trip that many predict would end up somewhere around $50,000.
That leaves us wondering whether LTC has lost its flair and would eventually degrade to a mid-ranked altcoin or would it turn out to be a temporary setback and the coin will regain its former glory.
There have been huge expectations concerning LTC’s possible bull run after the last halving that took place on August 5, 2019. As a result, the mining reward got cut in half to 12.5 coins per block, along with the price of LTC that deflated from $144 to $75 in just one month, and then to $23 during the coronavirus flash crash in March. These unfortunate events forced many hopeful traders to sell in panic or hold full bags of the rapidly cheapening coin, which they will most likely offload once the price breaks $140 - $150 to the upside, which, according to our forecast, will happen in Q1 of 2021.
That would be the time when Litecoin should encounter a serious selling pressure because it’s the psychology of most retail traders who were forced to keep the underperforming asset in their portfolios instead of exiting the losing trade in a timely manner. They would try to dump the coin, which caused so much frustration, at a minimum profit just to get out of the market and look for greener pastures, perhaps somewhere among DeFi coins.
1-week LTC/USDT chart
On this weekly chart, we will determine the most important price levels to watch in 2021 and analyze the future scenario on the basis of the past price action. First, let’s say that Litecoin had been preparing for the ongoing bullish rally for a really long time, and executed it quite elegantly by breaking the descending triangle to the upside and establishing a foothold above the 99-period moving average.
This piece of Litecoin price action certainly justifies the expectations of a sustainable uptrend, but at this particular junction, traders should be extra cautious about going long on LTC, unless a small 20% profit from then the price will pop up from $108 to the first level of serious resistance at $144 would suffice them. The reason for that being that Litecoin has every chance to go down the path that we saw XRP, another hugely underperforming cryptocurrency, had undergone over the past couple of years, when it had been hitting the ceiling near $0.3, but was always met by the wall of sellers. The same might well happen to Litecoin in the first months of 2021, as there would be a lot of disgruntled traders who would want to break even after making a bad call in the summer of 2019. Also, notice that this resistance area is close to converging with 38.2% on the Fibonacci retracement grid, which usually provides more fortitude to the selling side.
But if the price manages to entrench above that critical price level, Litecoin would become a good investment for the coming 5 or even 10 years. We predict that the first trend-forming higher high of 2021 is going to be established near $185, the price level that stands near 5% on Fibonacci, though the price of LTC could easily test the psychological level at $200 during the first months of 2021.
The fact that we are now seeing the largest trading volume that this market had in months, if not years, as well as the flow of the momentum, confirmed by the MACD indicator, further strengthens our bullish stance on Litecoin. MACD is already very high in the bullish control zone, with its MACD and signal lines (faster and slower moving averages) forming an expansion on the backdrop of the fattening green histogram, which is an unmistakable sign of buyers’ strength that will ultimately translate to the bullish behavior of Litecoin price next year.
1-year LTC/USDT prediction chart
Our LTC price prediction model suggests that when the price finally reaches $144, the sellers won’t be trying to dump the coins immediately and let the price flow to $185 over the next 30 days that would constitute a 50% appreciation. By that time, the market capitalization of LTC should move closer to $10 billion that might also allow the altcoin to regain its position in the global ranking after it had fallen down several steps.
Our algorithm predicts that by the end of 2021, the price of Litecoin in USD will stand at $239, which marks a 122% price increase over the coming year. Notice that on the weekly chart, the predicted price level meets with the 61.8% retracement level on Fibonacci and aligns with the major lower high from the bear market of 2018, which adds more weight to our prediction of Litecoin price for 2021.
But before proceeding with our LTC price prediction for 2025 and 2030, allow us to refresh your memory regarding the similarities and difference between the so-called digital gold and digital silver as those fundamental advantages of the altcoin under review could become key catalysts for the resurgence of Litecoin price in 2021 and the sustainable price appreciation of LTC in the next 5 to 10 years.
Our proprietary price prediction algorithm suggests that traders are to expect a massive price boost, caused by the factors that we will name here in the article. At the same time, our vision of this coin’s future is based on the notion that it would be closely intertwined with that of Bitcoin, where BTC will act as a big icebreaker ship that is going to lure all the attention and clear the path for cryptocurrency adoption, whereas Litecoin will follow in its tail while developing a more fundamentally advanced ecosystem for seamless payments.
In a way, Bitcoin will retain its status as the storage of value and the most dominant cryptocurrency that everyone wants to get their hands on, while Litecoin should become a viable solution for merchants and other online businesses.
Let’s have a quick recap: Litecoin emerged on the crypto scene in 2011, two years after the launch of Bitcoin, which makes it one of the oldest altcoins on the market that has the Litecoin Foundation, the non-profit organization based in Singapore, with the famous Charlie Lee at its head. Both blockchain networks utilize the PoW protocol, but Litecoin uses the Script algorithm that allows for block generation in 2.5 minutes, compared to Bitcoin’s 10 minutes. Add to that Litecoin’s superior transaction throughput of 56 TPS that will be greatly increased by 2025, when the Lightning Network, the layer 2 protocol for faster transaction on blockchain, gets fully operational. That would mean even faster and cheaper transactions that would help the Litecoin Foundation to expand its already extensive network of merchants even further.
Along with that, Litecoin is set to become a much more private cryptocurrency than its forefather, thanks to the much-anticipated implementation of the MimbleWimble (MW) protocol. FYI, MimbleWimble is a special blockchain design that allows hiding the three key elements of every transaction: amount transacted, sender’s address, and recipient’s address - enough data to track almost any transaction down to a particular individual, if one so desires. So much for anonymity, right?
The MimbleWimble blockchain, on the other hand, doesn’t generate identifiable (or reusable) wallet addresses, thus making all operations done on the network appear like random data. If those solutions are to be implemented by 2025, Litecoin will become a top-ranked altcoin that is relatively cheap, private, and offers lightning-quick transactions at almost negligible fees. Sounds very promising and bullish to us, but the real gist of this 2025 Litecoin price prediction isn’t fundamental advancements as such, but rather its inclusion in the initial list of cryptocurrencies that were made available on PayPal earlier this year.
In a nutshell, at the end of last month, PayPal has officially announced that the registered users of the online payments service are now eligible to buy, hold, and spend five selected cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and the Paxos (PAX) stablecoin. This was huge news for the entire crypto community that catalyzed the BTC’s run above the all-time high and the resurgence of LTC.
The reason behind such a massive price appreciation, which was especially important for the struggling altcoin, is that PayPal, along with several large investment funds like MicroStrategy and Grayscale, have been aggressively buying out all newly minted cryptocurrencies from that list to satisfy the growing demand.
But let’s not forget that so far, PayPal has opened that gateway to crypto only for its US customers, while the global rollout is said to occur in 2021 or 2022. And that’s when things will really get interesting for Litecoin and the other four cryptocurrencies because PayPal boasts 360 million active users worldwide - not all of them will use cryptocurrencies, of course, but even if some 20% - 30% would go for digital currencies, then we would speak of a genuine mass adoption that is going to drive the demand for LTC through the roof. Certainly, Bitcoin will benefit the most as it’s already a brand in itself, but once the nascent users dig deeper into the specifics of each cryptocurrency, they might want to opt for a cheaper (both in terms of price and transaction cost) and a faster coin that also has the anonymity feature.
There is also a small but important psychological factor that might play into LTC’s hand: people, in general, are designed in a way that they want to buy more at a lower price, and they don’t like fractional numbers. It means that when the price of Bitcoin reaches triple digits, a $3000 worth of holding in BTC would look like a zero with tons of zeros after a dot, not to mention that a $10 payment, for instance, would look like a line of programming code. That would be complicated and very confusing for the ordinary user. Whereas Litecoin, and a fraction of it, would come in a comprehensible number.
That might sound simplistic, but it’s a matter of basic psychology that rules everything, even the financial markets. Remember our metaphor about Bitcoin being the icebreaker for Litecoin? That’s how it’s going to play out: by 2025, BTC will become the universal store of value, popular among millennials, whereas LTC will handle the operational side of things, so to speak, by becoming one of the primary means of payment for online merchants.
And let’s not forget that the Litecoin network also features atomic swaps, a technique that allows for seamless P2P trades in different coins across different blockchains, which is a key characteristic that distinguishes the Litecoin blockchain from the representatives of the DeFi movement that are constrained by the so-far limited capabilities of the Ethereum network. Therefore, even if a person owns several thousand sats, he or she would be able to swap them easily for the more understandable LTC at virtually no cost. That will ensure the constantly growing demand for Litecoin and, in turn, a significant appreciation of its price by 2025.
5-year LTC prediction chart
Now, let’s get down to the specifics. Our Litecoin price prediction algorithm has calculated that in 3 years, the value of LTC will increase by 650% as the price will reach $809.5. The following year, as more and more PayPal users get acquainted with LTC, its price will soar by 1332% from the current standings and force the coin to double in value and hit the $1,544 mark. In 2025, Litecoin will have its price double in value again and ascend to the psychological level of $3000 per coin.
Don’t be surprised by this LTC price prediction of massive gains. Litecoin remains severely undervalued, especially after the botched post-halving bull run. Just think about it, Bitcoin is four-times scarcer than Litcoin (21 million compared to LTC’s 84 million), but it’s now almost 250 times more expensive than LTC. Talking about the upside potential, right?
Thanks to the inclusion in PayPal's original list of accessible crypto, in 10 years, Litecoin can realize this potential to the fullest, especially if the technological improvements of its network will come to fruition. But by 2030, the cryptocurrency market in general, and the LTC one in particular, will mature to a point where it would become far less volatile, so there would be fewer and fewer periods of massive gains and losses.
Besides, if Litecoin is to become a universal mean of payment, its price would have to settle down and reach some average-weighted level, which in our opinion, and according to the showings of the proprietary price prediction algorithm, will be at around $4000 per LTC, a price that will ensure the accessibility, and the efficiency, of this altcoin for years to come.
LTC remains a heavily undervalued cryptocurrency that has recently begun to show the intention to enter a full-fledged bull market. With so much upside potential, Litecoin is definitely a good investment.
The Litecoin network is much faster, more efficient, and cheaper than that of Bitcoin. Plus, it can potentially become a privacy coin, at least partially.
By the end of 2021, LTC will hit the price target of $239.
By 2025, Litecoin will see massive gains that will take the price as high as $3000.
In 10 years, LTC will be priced at $4000.
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