With time, Litecoin has developed an eerie habit of being one of the most volatile cryptocurrencies in the world. The price action in the past 24 hours must have shocked (and killed) the bears, and even surprised the bulls. The market cap of Litecoin zoomed more than 31 percent intraday as short sellers went scurrying for cover, unable to handle the unprecedented buying pressure. Litecoin, on BTCE, touched a high of $3.946.
What a day!
Bitcoin is usually the main trigger behind Litecoin price action. A surge in Bitcoin tends to spur a rise in Litecoin. But this time was different!
While Bitcoin continued its upward march, beating all near-term price estimates, and crossed $330, Litecoin behaved as good as dead. This all seems to have changed as Litecoin has made up for the gross underperformance in a single day. All this has happened on a strong surge in volume, lending credence to this upmove. Take a look at the 240-minute LTC-USD price chart below.
Profit Booking Hits the Market: What to do?
According to coinmarketcap.com, the current market cap of Litecoin is close to $165M. Each Litecoin is worth $3.688 at the time of writing this report, already down 6.5 percent from the intraday high. The market participants are now somewhat confused as to whether to stay long or book out of their long positions?
The answer to this is pretty simple: If you bought Litecoin at pretty lower levels and are sitting on huge profits, it is better to exit a majority of the long positions and speculate with the rest. If the price rises even further, you will still gain (even though less), but if it falls, you have the comfort of having booked substantial profits.
Litecoin is a highly volatile cryptocurrency and it makes good trading sense to keep pocketing the profits as they come.