The little determination of the crypto market participants is generating pessimistic scenarios, however, the most relevant support levels continue to be defended. Litecoin price action is a clear example of this widespread tide of little decision on either side, tipping the odds slightly to the bear side.
At the time of writing, LTC is trading at $110.97, accumulating a 1.31% gain in the last 24 hours. With a market capitalization of $7.7 billion, it ranks 21st in the Crypto Online ranking .
If you want to find out how worrying the current scenario is for this cryptocurrency, and where its price is headed in the near future, check out the analysis below.
Technical analysis of Litecoin price action
In the monthly chart LTC vs USDT we can see a clear downward trend since mid-2021, product of a correction after a large bullish rally developed.
The price of Litecoin was hampered by the supply zone left by the historical maximum reached in 2017. From there, the price began to create a descending triangle, which is a chart figure that tells us about a possible reversal of the trend.
Although we can think that the price is making a simple correction before recovering the previous trend, the lack of determination of the buyers jeopardizes this scenario.
The 8-month EMA and 18-month SMA, which had been crossed to the upside during the 2021 rally, are now crossed to the downside. It looks like the immediate support level around $117 is now more likely to be missed. If this happens, then the ground would be cleared up to $68.
For now, medium/long-term holders could continue to trust Litecoin, as its price action still does not confirm that the bears have taken control. The descending triangle has not yet been fully broken through. We may be near the bottom of the dip.
Key short-term levels for LTC
To make a more accurate forecast of the price of Litecoin, let’s review its behavior on the weekly chart.
In this time frame we can see that sellers are in control of the short/medium term trend. However, lately they have been showing weakness.
Litecoin price is being defended above the 200-period SMA, which can be considered a good sign.
But, the tilt is clearly bearish. As long as the lower lows remain intact, we are likely to see more selling in the near future. Losing $110 would open the way for sales to probably $68.
To think about buying, the bulls must first go through the immediate resistance, located at $127. But it would not be until $160 was recovered that a possible resumption of the long-term uptrend could be trusted.
Litecoin released its big upgrade dubbed “Mimblewimble”
After almost two and a half years of development, Litecoin has finally released its update called “Mimblewimble”, which will allow privacy-focused transactions on the network.
The integration of Mimblewimble into Litecoin occurred via the Mimblewimble Extension Block, also known as MWEB. Which allows network users to opt for much more confidential and secure transactions. MWEB lead developer David Burkett said the update will improve Litecoin’s viability as a cryptocurrency that can be used for everyday transactions, such as paying employee salaries and even buying real estate.
Mimblewimble is a decentralized protocol focused on privacy. The origin of the name of this protocol is given by a spell from the Harry Potter book series. The MWEB protocol has as its main function the confidentiality that allows users to hide the information of the transactions.
The Litecoin network launched its first Mimblewimble testnet in October 2020. After experiencing an initial delay due to low community engagement.
Private cryptocurrencies that promote anonymity have come under scrutiny around the world. Various exchanges removed the cryptocurrencies Monero (XMR), Zcash (ZEC) and Dash (DASH) from their platforms in early 2021 amid a wave of regulatory pressure.
Despite being one of the first cryptocurrencies to hit the market. Litecoin has struggled to maintain its prominence over the years. Litecoin is currently located at position 22 in the market capitalization ranking. With a total capitalization of $7.699 million, according to CoinMarketCap.
Mimblewimble was designed and introduced in 2016, by an anonymous developer named «Tom Elvis Jedusor». This name refers to the French translation of «Voldemort».
Mimblewimble provides a framework for a Blockchain that offers scalability, fungibility, privacy, and anonymity. This net takes its name from the popular «tongue-tying» spell from the Harry Potter book series. The spell binds the victim’s tongue to prevent them from revealing specific information, the Mimblewimble protocol literally works like the spell, as the protocol allows transaction information to remain completely anonymous.
In addition to anonymity and private transactions, Mimblewimble’s technology places a strong emphasis on fungibility and scalability of the network, key features that many other Blockchains currently lack. The Litecoin Foundation believes that the integration of Mimblewimble into its network will benefit Litecoin’s status as «solid money». Which is a broad concept that refers to stablecoins that are less susceptible to depreciation and the influence of regulatory monetary policies.
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Mimblewimble’s feature of complete anonymity of transactions is in contrast to the protocol of Bitcoin and other cryptocurrencies, where the sender’s address, the amount of cryptocurrencies sent, and the recipient’s address are usually revealed. Mimblewimble does not disclose any of this information.
MimbleWimble Coin is currently traded on various exchanges including Bitforex, Hotbit, TradeOgre, and Whitebit.