It’s back to red for Litecoin and while Charlie Lee endorses Monero, investors are bleeding thanks to yesterday’s 10 percent loss. Overly, we expect a retracement but this should come at the benefit of sellers aiming at $25.
Latest Litecoin News
Charlie Lee, the co-founder and the public figure head of Litecoin is always on the news. He may be controversial sometimes and while he represents Litecoin advocating for its use in this deep market, he’s never shy of endorsing other coins. He’s particularly interested with privacy features as those found in Monero and sometimes back he held a Twitter poll asking users to vote for one of the three privacy features he had proposed.
Among them was the incorporation of Confidential Transactions (CT), Mimble-Wimble and ZK-SNARKs. The online community was clear and preferred to see the integration of CTs rather than ZK-SNARKs which came in second with roughly 25 percent of the votes. However, 22 percents voted against inclusion of privacy features in Litecoin.
Though a novel idea, Monero and its strict anonymity properties is facing backlash from security organizations such as the US Secret Service. Therefore, even if it is incorporated, it will be a delicate balance between freedom and probability of further scrutiny.
Moving on, LoafWallet a service that allowed users to buy and sell Litecoin via CoinBase is not looking for Beta testers as it prepares to transition over to SimpleX. At the back of complaints and more, this will open the door for more agent satisfaction and the further exposes users to more than 150,000 users wishing to buy any amount between $50 and $20,000 worth of LTC.
Litecoin (LTC) Price Analysis
LTC Weekly Chart
The depreciation is clear and after yesterday’s clip, LTC is down 10 percent on a weekly basis. That means prices are now racing towards the main support line at $50 complementing the bear break out pattern of early August. In any case, we were net neutral encouraging risk-averse traders to only execute long trades once there was a clear break and close above $70 at the back of strong volumes.
That didn’t happen and while short term traders took a hit, our trade plan is valid. It would be ideal for LTC traders to wait for clean cuts and breaks below Sep lows at around $45. That way, traders would be trading in the direction of the strong bear candlestick of Week ending Sep 9 and syncing in perfectly with the general bear trend.
Ideal bear targets remain at $25 while another whipsaw that re-asserts buyers above $70 nullify this bear projection.
LTC Daily Chart
Back to the daily chart and the ranging market of the last two months is clear. Following the break out trade of early August, the market has been ranging within a $20 range with caps at $70 and bases at $50.
Following yesterday’s influx of sellers and loss magnification, we expect sellers to build enough momentum and breach the $50 level.
Thereafter, we shall recommend LTC short traders to sell only once a whole bear bar close below $50 with first targets at $25 as aforementioned before.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.