Litecoin Price Crashes As Retail Investors Turn To New Altcoin Projects. Is LTC Going to Zero?

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Simon Chandler

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Simon Chandler is a Brighton-based writer and journalist with over ten years of experience writing about crypto, technology, politics and culture. He has written for Cryptonews.com since late 2017,...

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August 27, 2024

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The Litecoin price has fallen by 2% in the past 24 hours, declining to $61.49 on a day that has seen prices drop throughout the market.

LTC has actually escaped lightly in relation to other coins, with the market as a whole now down by 5% today.

However, the alt remains down on all timeframes, suffering a 2.5% loss in a week, an 18.5% decrease in a month and a 4% decline in a year.

It seems that Litecoin’s status as an established and somewhat non-evolving alt is undermining its growth, with many investors prioritizing newer projects with more apparent potential.

Litecoin Price Crashes As Retail Investors Turn To New Altcoin Projects. Is LTC Going to Zero?

To be fair to LTC, it has actually rebounded by 1% in the past hour, as buyers take advantage of the dip.

Its indicators reflect this sudden recovery in momentum, with its RSI jumping from under 30 late last night to around 50 as of writing.

It’s also promising that its 30-period moving average (orange) appears to have bottomed out, with its recent decline flattening and with the indicator looking like it’s ready to begin rising towards the 200-period average (blue) again.

In other words, Litecoin looks like it could mount a solid recovery over the coming days and weeks, given how oversold it is.

But because it remains down in the past year, it’s questionable as to how sustained and long-term any recovery may be.

LTC has certainly lost ground to other alts in the past year or so, with the coin’s current trading volume standing at only $350 million.

Not only that, but its highest volume for the year was $2 billion (from late March), whereas Bitcoin, Ethereum and Solana saw high volumes of $100 billion, $48 billion and $14 billion, respectively.

In light of this gap, some traders and analysts believe that Litecoin is in the middle of a terminal decline, capable only of diminishing returns at best.

This may be the case, although the Litecoin community continues to highlight some of its gains as a network, including a reported growth in transactions this year.

As such, it may be rash to write off Litecoin completely, even if it doesn’t really seem like it will be enjoying any above-average gains anytime soon.

The Litecoin price could return to $80 by the end of the year, before reaching $100 in Q1 2025.

Traders Gathering Around Newer Alts

A big part of Litecoin’s problem is that it was one of the first wave of alts to hit the crypto market, and because it doesn’t really offer much beyond a slightly more scalable version of BTC traders seem to have increasingly forgotten it.

Not only has the market been focusing more on fundamentally stronger alts, but it’s also buying up more volatile tokens.

This includes presale coins, which can often rally big as and when they list on trading platforms.

One of the most exciting presale tokens in the market right now is Pepe Unlimited (PEPU), a new meme token and layer-two platform for Ethereum.

It has raised almost $11 million in its sale, a clear sign of how strongly investors have taken to the project.

Their interest stems from its solid fundamentals, with its L2 network promising transaction speeds 100x faster than Ethereum’s.

It will also provide competitively cheap fees, making it a potential rival to existing layer-two platforms such as Polygon and Arbitrum.

Also bullish is the fact that it will focus on becoming an ecosystem for meme coins, a strategy which has worked very well for Solana this year.

Its native token PEPU will have a max supply of 8 billion, with 30% of this going towards staking and 20% to its sale.

Another strong sign is that Pepe Unchained already has a decent-sized community for a young project, with its X account now reaching over 11,000 followers.

Investors can join this presale by going to the official Pepe Unchained website, where they can buy PEPU at a price of $0.0093477 per token.

Given its popularity, and given the success of its sale, it could massively exceed this price once it lists in the next month or so.

Buy PEPU Now