Does Litecoin Have What It Takes To Take On Bitcoin?

The excitement around Litecoin is building up, as the cryptocurrency continues to consolidate above the $100 mark. Despite pulling back after touching record highs of $106, the cryptocurrency has clawed back and remains well supported for more gains.

The cryptocurrency is currently trading above a major bullish trend line with support at the $99 mark intact. Immediate resistance is at the $103-104 mark above which the digital currency could make a push for the $106 handle, ahead of a potential new record high.

On the downside, $96-$100 range acts as a major support level. As long as Litecoin continues to trade above $96, it remains elevated for more gains. In addition to renewed investor interest on cryptocurrencies, a number of factors are acting in favor of Litecoin continued upward run.

Litecoin Chart courtesy of coinmarketcap.com

Litecoin vs. Bitcoin

Like some of the major cryptocurrencies, Litecoin has been one the best performing digital currencies this year. Solid performance is already fuelling talk that the digital currency could hit record highs of $1000, faster than initially thought.

Even though the digital currency is yet to trade above the $100 handle for an extended period, the fact that its underlying technology offers significant benefits continues to enlist strong interest from investors.

Bitcoin has come under criticism on the fact that it takes approximately 10 minutes to process transactions. Litecoin, on the other hand, takes approximately 2.5 minutes, a performance that continues to strengthen its competitive edge. In addition, Litecoin offers lower transactions fees compared to its rival.

Choosing Litecoin at the expense of bitcoin would be a no-brainer for businesses looking to enjoy fast transactions speeds as well as lower fees.

There is no doubt that bitcoin holds a competitive advantage over Litecoin given its popularity and market value. However, as more people start using cryptocurrencies, businesses are most likely to settle for digital currencies that provide more synergies when it comes to transactions speeds and fees.

Is Litecoin Undervalued?

Given the synergies that Litecoin offers, it goes without saying that it is undervalued. The fact that it is trading at less than one-hundredth of bitcoin points to an imbalance given its benefits and edge. It is highly likely that it will close this gap going forward.

However, as the cryptocurrency market heats up, Litecoin price should receive a boost resulting in an increase in its price and value. Speed and cost advantages should work in its favor as people and businesses look for cheap and fast methods for exchanging money.

Litecoin publicity has been low key compared to other cryptocurrencies. However, it remains one of the most robust digital assets when it comes to exchanging availability and merchant acceptance which should continue to drive its price as the crypto market expands.

Image courtesy of cormac70 via Flickr

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.