Litecoin has lost one quarter of its value over the past four days with it now trading down at the $60 level of support.
It’s a far cry from two weeks ago when it surged momentously towards a six-month high of $84.67 before a swift rejection.
After taking out the $78 and $70 levels of support with consummate ease, LTC is now being propped up by the daily 200 moving average.
With momentum clearly having shifted to the downside, Litecoin needs to avoid breaking below the 200 MA to avoid an initial slump to the $53.83 level of support.
The sell-off hasn’t been confined to just Litecoin. Several cryptocurrencies including Ethereum and XRP have suffered double-digit declines over the past week.
Litecoin in particular has had $1.1 billion wiped from its market cap during the recent drawdown, which has seen it become the seventh largest cryptocurrency after falling behind Bitfinex stablecoin Tether.
An immediate target if LTC can begin to move to the upside would be $64.10 as this was a bitter point of resistance on several occasions in November.
But the recent sell-off is hard to ignore from a short-term perspective with it now being likely that Litecoin will continue a descent to the downside over the coming weeks based last night’s sell volume.
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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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