Even as the sky has come along with most Cryptocurrencies , Litecoin (LTC) is handling it pretty well. Usually, Litecoin and its alt peers experience an amplified swing in value whenever major market moves hit Bitcoin . During this round, however, not only is LTC bucking this trend, it is even weathering the storm and outperforming BTC at times.
Litecoin is currently trading at $18.50. Granted, it's down 13% from its pre-fall plateau of around $21. And it has once again plunged to new lows in 2014, the likes of which it hasn't seen since the great crash in December, now testing the $17.60 mark on a couple of occasions. But under similar situations in the past, Litecoin would have fared far worse. Considering Bitcoin's drop of roughly 14% (and far worse on MtGox), Litecoin should be off by 25-35%.
This time around however, the market feels that this is mostly a Bitcoin specific problem- not a crypto problem. If some exchange would be experiencing similar such problems with Litecoin, LTC can easily be down by 25-35%. Furthermore, there is no intrinsic problem even within Bitcoin, as its declines across the board are merely reflections of panic-driven contagion spreading from MtGox.
The best indicator of LTC's resilience has been its performance against BTC. LTC is currently trading at 26 mBTC, a level discussed here several times during its decline. It has been here before. It really hasn't dipped much lower, only briefly testing the 25.3 mBTC mark during a couple of moments of wild trade. In fact, LTC is showing flat and sometimes positive behavior versus BTC during the current downswing.
Expect Litecoin to easily make a strong comeback back to its $20-21 range, possibly higher, in the days following closure on the MtGox issue.
