The rally in the cryptocurrency space over the course of the first six months of the year was nothing short of staggering and although Litecoin did not gain as much as many thought it would, it did not drop alarmingly either. That being said, LTC has dropped in value dramatically from its highs this year.
Why the Sudden Fall?
Things have become particularly chaotic over the past few days as LTC kept dropping in price at almost all exchanges worldwide. However, the most important thing to point out in this regard is that there is no clear explanation yet about the sudden nosedive.
The scale of the drop has been quite significant, and hence, it is no wonder that investors in LTC are also not quite sure about the immediate future of the altcoin. The token has peaked this year at $146.43, but since then, it has suffered a massive drop and only last month it had been trading at only $57. That reflects a drop of as much as 61%, and there is still no indication whether the selloff in Litecoin is going to end any time soon.
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Over the past few days, the price has recovered somewhat, and it has remained largely range-bound. However, the bounce-back of sorts is not significant in any way, considering the fact that it has been trading between $70 and $80 for much of the past two weeks.
While no clear explanation has yet been put forward, analysts have professed their own ideas with regards to the drop. One of the most popular theories is that many of the investors have decided to book their profits in LTC and decided to cash out. The sudden departure of so many investors has resulted in the sharp decrease in price in such a short span of time. However, it remains to be seen how Litecoin behaves over the course of the next few days.
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