Litecoin has established a key level of support above $73 in spite of its 6.8% sell-off during the early hours of Monday morning.
It is now forming a platform ahead of a potential rally towards the $78 level of resistance which suppressed the price before a 35% move to the downside in September as well as yesterday.
The daily relative strength index (RSI) remains in a bullish formation, making consistent higher highs since January 29 during the recent surge.
A breakout above the $78 region would leave Litecoin open to testing the psychological $100 level for the first time since August 4 2019.
Litecoin is more than 100% up since its gruelling $36 low in December with its market cap increasing by a staggering $2.4 billion.
Much of the upcoming price action will also depend on the trajectory of the world’s largest cryptocurrency – Bitcoin, which will undergo a block halving this May.
Block rewards for miners will be slashed from 12.5 BTC to 6.25BTC per block, which has historically caused a surge in the price of cryptocurrencies as supply dries up amid mounting demand.
Recently, the “Magical Crypto Friends” show – which is available on YouTube and features Litecoin founder Charlie Lee – discussed the Litecoin Summit 2019.
The show covered the most important discussions in the community. From Litecoin acting as a store of value to new development updates.
Lee confirmed that the project was working on privacy improvements as well. The Litecoin development team is working with the Mimblewimble protocol, specifically the developers behind Grim, with a view to potentially adding the privacy protocol as an extension block.
According to Lee, it would work as follows:
“We’re working with the Grim++ developers to add an implementation of Mimblewimble. It adds an extension block to the Litecoin main-chain. You can transact between chains to use enhanced privacy.”
The goal would be to give Litecoin users improved privacy features when transacting.
Litecoin was released in October 2011 by Charlie Lee, a former Google employee. It is a fork of Bitcoin, with the main difference being a smaller block generation time. The protocol also increased the maximum number of coins and implemented a different script-based algorithm.
Litecoin is one of the leading cryptocurrencies and is one of the top 10 cryptocurrencies by market capitalisation.
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