Litecoin declined close to 20% within the space of 24 hours, following the broader cryptocurrency market lower as digital assets saw red.
The alternative protocol asset (altcoin) fell to as little as $208.93, a roughly 17.7% drop yesterday’s high of $253.90, CoinMarketCap figures show.
The altcoin suffered this decline as the total market value of digital currencies declined more than 10% within 24 hours, additional CoinMarketCap data reveals.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Following The Leader
When explaining Litecoin’s recent declines, several analysts claimed that Litecoin simply followed the market lower.
“The pullback in Litecoin is indicative of the general market pullback,” said Charles Thorngren, CEO of Noble Alternative Investments.
Marshall Swatt, a serial entrepreneur, offered similar input, stating that:
“My feeling is that top cryptos, in general, are in the red today after peaking yesterday.”
The Market’s ‘Normal Reset’
Swatt provided further clarity on this market activity, stating that:
“This doesn’t seem driven by fundamentals but rather a normal reset after a steady price rise from the recent lows.”
Thorngren emphasized that as the market adjusts, Litecoin might experience more aggressive selling activity because it has surged lately.
“From a trading standpoint, Litecoin could see a slightly higher percentage of selling due to the recent gains versus the broader market. When you look at the monthly chart Litecoin is still up 22% whereas Bitcoin is up a just under 1% and Ethereum is down 13%.”
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