It's been some time since I last visited Litecoin. If you recall, that was during the time of the LitePay closure, which was the latest testament in a string of incidents over the years to the dangers and consequences of an unregulated environment. The fact that even the Litecoin Foundation and Charlie Lee did not catch it early on made it even more astounding and incredulous.
In any case, I thought of checking what's new in the world of Litecoin today. Let's look at the daily snapshot of LTC/BTC first:
We are currently very much in the midst of a downtrend. Looking at the purple downtrend channel, you can identify a series of lower highs and lower lows. It will be interesting to see if the chart runs to script in the upcoming days. For another lower-low to occur, the next few bars must close below the most recent low at around 0.016. Further down, I've drawn a support line at around 0.0142.
On the other hand, immediate resistance is at 0.018, which happens to coincide with the 50EMA line. Further above this would be 0.020. In my opinion, a break above 0.018 will be enough to send a strong message that the current downtrend has stalled.
On the news front, there have been some positive news on Litecoin. First is the commitment of Abra, a financial and technology company offering peer-to-peer mobile payment, to support Litecoin. Abra would also be the first to make use of smart contracts for transactions on Litecoin. The launch is scheduled for April 13.
There's also news that Alliant Partners, a 15-year veteran in the payment industry, has announced an official partnership with Litecoin foundation to develop state of the art blockchain technology for Litecoin. The news article I read claims that Alliant Partners has become Litecoin’s first official payment processor.
All these are well and good and welcome news for Litecoin. However, they are still upcoming in the pipeline, and as we have learned from the LitePay debacle, it will be prudent not to set hopes up too high until a successful launch and product is confirmed and out in the market.
Trade carefully everyone!
For more information on Litecoin news, please click here
Risk Warning: All comments, charts and analysis on this post are purely my own and should in no way be treated as recommendations or advice, nor should they be construed as an endorsement or recommendation to buy, sell or hold. Please do not trade based solely on the information provided on this post. Furthermore, past performance does not guarantee future success. Always do your own due diligence and analysis when trading.
Chart courtesy of TradingView
