Like Bitcoin, the short-term price outlook for Litecoin is fairly volatile. In the medium, to long term, it is likely that Litecoin, Bitcoin, and other currencies will generally continue on an upward trajectory, even if it is a rocky road. If Litecoin becomes adopted as a common payment method then you should expect to see speculation decline as the cryptocurrency begins to stabilize.
Miners’ sentiments may also have some impact. The Litecoin mining algorithm is less dependant on electricity than that of Bitcoin and this can lead to lower costs for miners. If miners decide that Litecoin is giving them more stable returns then they may switch to Litecoin. This increases the supply and encourages traders to buy Litecoin.
If merchants decide that they want to accept Bitcoin as a payment method then Litecoin’s similarities mean that it will find it easier to become accepted. While Litecoin does tend to follow Bitcoin there is also the possibility of hedging taking place. Traders are looking to shift some of their assets as Bitcoin crests in order to limit any losses from a potential crash. This sort of behavior was observed just prior to the Bitcoin fork in 2017. When traders do this it has the potential to increase the value of Litecoin.
Like many other cryptocurrencies, Litecoin’s value is largely linked to that of Bitcoin. If Bitcoin begins to rise or fall in value then you should expect Litecoin to follow suit shortly afterward. Cryptocurrency is a volatile commodity so you should expect to see these dramatic fluctuations in value on a regular basis. Litecoin is very similar to Bitcoin and it will generally be able to ride on Bitcoin’s coattails. The main thing traders should look out for is market adoption.