Litecoin remains in a bullish formation despite suffering a potentially devastating sell-off over the weekend.
After surging to a six-month high of $83 Litecoin felt the full force of bearish pressure as it succumbed to a sudden 19.65% move to the downside.
However, the world’s sixth largest cryptocurrency rapidly bounced back before the daily candle close to avoid a confirmed break down in price.
It has gone on to close two consecutive daily candles above the $72 level of support, which will be key if the rally is to see continuation over the coming weeks.
If Litecoin can continue to establish $72 as a platform it will most likely swing back towards the $78 level of resistance.
A breakout above $78 will see the price target of $85 re-emerge as well as $90 and $100, both of which acted as a point of resistance during the 2019 rally to $146.
It’s worth noting that Litecoin experienced a golden cross on the daily chart on February 13 and that a re-test of a cross is quite common before a major move comes into fruition.
Much of the upcoming price action will also depend on the direction of Bitcoin leading towards May’s halving event.
Bitcoin slumped back below $10,000 over the weekend much to the dismay of bullish traders, many of whom believed the rally since the start of the year would have driven the price to a new all-time high before the summer.
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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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