Litecoin has continued a period of consolidation around the $60 level of support following its 28% descent to the downside over the past three weeks.
Holding above $60 will be key, but continuing to trade above the daily 200 moving average will be more important, with it currently coming in at around $58.
A daily candle close below the 200 MA will signal a clear shift in the market, with bearish pressure being triumphant over the optimism that was felt across all cryptocurrencies at the start of this year.
It’s worth noting that altcoins like Litecoin are still significantly up on where they were at the turn of the year, with Litecoin having risen from below $40.
However, failure to breach the $83 level in February is potentially damming for Litecoin, with bullish momentum seemingly subsiding over the past fortnight.
Potential levels of support if Litecoin breaks below $60 are at $54, $50 and $47, while upside targets remain at $64 and $70.
Much of Litecoin’s upcoming trajectory will depend on the impact of Bitcoin’s halving event. Block rewards for miners will be slashed from 12.5BTC per block to 6.25BTC, which has historically seen the value of cryptocurrencies rise due to a reduction in supply.
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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