- Market Cap: $3,127,694,363
- Max Supply: 84,000,000
- Circulating Supply: 58,233,103
- Daily Volume: $253,712,183
Litecoin is at the crossroads
Litecoin has hit the biggest support line so far, and kept above it. However, the downwardsis reaching the support line as well, and they will cross on the 24th of September. What will happen?
The most likely scenario
There is an extremely high probability of Litecoin breaking out before 24th of September, and the break has an extremely high likelihood of pushing upwards. Litecoin has been following BTC’s patterns for quite a while, but has still been a worse-performing asset than BTC itself. This might change soon. A proper long-short portfolio should have a Litecoin long position for the next 20 days. However, we do suggest a long-short portfolio with another asset being shorted for the same amount of equity in order to negate crypto market movements.
The less likely scenario
There is, of course, the other part of the story. Litecoin might break to the downside if the buyers do not rally up. Even if it’s highly unlikely, there is a chance for this to happen. If Bitcoin does go down in the next 20 days, Litecoin has high probability of following down its path. This is why having a long-short portfolio during the “bear market” is crucial. All Cryptocurrencies are highly correlated and we need to either only trade with the general trend of the market, or take long-short positions with extreme caution.
Most financial advisors and gurus are losing money in Crypto these days simply due to them not being educated in properly managing risk. This is why Forex.Academy is trying to show people that portfolio and risk management is just as important as creating trade ideas. In the case of Litecoin these days, if the market goes up or stays the same, Litecoin will outperform it. If it goes down, Litecoin will outperform it to the downside as well. Either way, this play on LTC is a market play.