Litecoin Price Analysis: LTC/USD on Firmer Footing Compared to Its Peers

  • Litecoin price held much ground, despite that wave of selling pressure earlier in the week.
  • Charlie Lee, Litecoin’s founder, talks of potential fungibility this year for the coin.

Litecoin Price Behavior

LTC/USD continues to struggle with a committed direction. Price action is still very much victim of range-bound narrow trading. Litecoin however has managed to hold firmer footing in comparison to many of its peers. Earlier this week, another wave of selling pressure hit the market, resulting in some big double-digit losses. LTC/USD took a minor knock, but not as hard as most other cryptocurrencies.

Litecoin is stable, though still confined within a range block formation. The upper part of this can be seen containing the price at $34.50-$35. There is also a strong stubborn supply area seen just above, that runs all the way up to $38. The price has not been above since 10th January when the entire market took a larger beating from the sellers. To the downside, the lower part of the range is observed at $30 but runs down to $27. LTC/USD has not been below this since December 2018.

Litecoin Privacy Coin This Year

The founder of Litecoin, Charlie Lee, has been keen for quite some time now about the importance of fungibility. He recently was speaking on the idea in an interview and noted: “so, having something like confidential transactions will get us closer to good privacy and good fungibility, and that is something that I am currently thinking about exploring for Litecoin.”

Lee this week has further officially confirmed the intentions of making Litecoin more fungible, and for there to be confidential transaction features. The expectations are for these to be implemented in a future release of the full node.

He tweeted, “Fungibility is the only property of sound money that is missing from Bitcoin & Litecoin. Now that the scaling debate is behind us, the next battleground will be on fungibility and privacy. I am now focused on making Litecoin more fungible by adding Confidential Transactions.”

The Litecoin founder however did not mention details in terms of time frame regarding this potential update. Suggestions are for this to be implemented potentially this year.

Technical Review – LTC/USD

LTC/USD daily chart.

It is going to take quite some bullish momentum in order to breakout of this range. The bulls need to start penetrating the $38 price area for any change of a push above. Should this be conquered, then the top area seen between 6-9th January, $40-$42, will be in play. A breach here could allow room for a clear run back towards the psychological $50 mark.

Looking to the south, if the bears drop through the key near-term mentioned demand, $30-$27, then this could be very punishing. An exposure of this support will see the December low area come back into the picture. This would result in the bears retesting this price territory, down at $23, low printed on 14th December 2018.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.

Leave a Reply