Connect with us

Altcoins

Litecoin [LTC] could either shoot for the stars or crash and burn as halving nears, claims analyst

Avatar

Published

on

Litecoin [LTC] could either shoot for the stars or crash and burn, as halving nears, claims analyst
Source: Unsplash

Litecoin [LTC], the digital silver to Bitcoin [BTC], is nearly two months away from its highly anticipated halving. With the price of the cryptocurrency soaring by over 300 percent in 2019 alone and breaking the $100 mark, the halving bulls can either continue their rampage or be overthrown by a bearish onslaught, warns an analyst.

A recent report by CryptoMedication from Zerononcense, detailed the imminent price movement for Litecoin, based on a slew of indicators. Given the obvious price waves LTC has amassed over these past few months, the analyst forewarns that, “at first look, Litecoin’s price action is extremely bullish.”

However, zooming out on the 1-day chart reveals three key observations. First, the cryptocurrency is “nudging” a level of “overhead resistance,” at the moment. Second, Litecoin has “clearly broken” a level of “long term overhead resistance,” using volume and momentum.

Source: Trading View

Further, the analysis stated that the cryptocurrency is facing strong overhead “horizontal resistance,” at $117.54. At press time, LTC was trading at $117.08. In light of this resistance level, he added,

“The question that must be answered at this point is whether there is enough momentum behind Litecoin for it to break past the $117 point of resistance. “

In order to analyze “momentum,” the analysis resorts to using RSI and Volatility RSI. First of all, the RSI of 14, right off the bat, is “not good for Litecoin bulls,” as it is a “tell-tale sign that buy pressure that is starting to subside and that the asset in question, may flip bear soon.”

A key “warning sign” was looking at the above in the context of the cryptocurrency at overhead resistance.

With respect to this indicator, the report adds,

“From what we can see above, the indicator has signaled that there will be increased growth in the near future for Litecoin.
However, in light of the RSI (14), this indicator should be taken with a grain of salt.”

Source: Trading View

Moving on to moving averages, the report highlighted the 50-day MA, stating that it had been “successfully tested.” The report added that if the price of LTC drops, a “reliable point of support,” would be the 50-day MA.

The weekly resolution pointed to the cryptocurrency “lingering” at the same point. However, a break past the same could result in “astronomical gains” for the cryptocurrency. The RSI on the same is described as “bullish.” However, the Balance of Power RSI is not and hence, should be “watched very closely.”

Source: Trading View

CryptoMedication concluded,

“In the opinion of Zerononcense (not financial advice) if one is not in Litecoin currently, an entry at this point (at the resistance) is more than likely not prudent.
However, this does not mean that a short is inherently intelligent either.
As noted in the above photo (posted below for convenience), the price of Litecoin is bound to either soar upward or plummet downward depending upon what ‘decision’ the market makes”





Subscribe to AMBCrypto’s Newsletter


News

Facebook’s Libra is a double edged-sword, but will benefit Bitcoin, says Caitlin Long

Priya

Published

on

By

Facebook's cryptocurrency Libra is a double edged-sword, but will benefit Bitcoin [BTC], says Caitlin Long
Source: Unsplash

On 18 June, the world’s biggest social media platform, Facebook, introduced its new cryptocurrency, Libra, set to launch in the first half of 2020. The coin that would have its own blockchain will be backed by several sovereign currencies, and these reserves would be managed by the Libra Association. The association will also be engaged in several other key activities, which would focus solely on the development of the Libra ecosystem.

Notably, the coin has brought together major players in both the financial and technology industry including, MasterCard, Paypal, and Coinbase. Despite such strong backing however, the concept of the coin was soon shot down by several influencers and government authorities.

The French Minister of Finance and Economy, Bruno Le Maire, released a statement asserting that Facebook’s digital currency becoming a sovereign currency was “out of question,” adding that “it can’t and must not happen.” Along with this statement, the Finance Minister also raised concerns about money laundering and terrorism funding and urged G-7 countries Central Bank Governors to draft a report on the new “global currency” for their meeting in July.

Further, Facebook’s cryptocurrency is also facing hurdles in its native country. Maxine Waters, Chair of the House Financial Services, has requested the social media giant to hit the pause button on the development of Libra, until Congress and regulatory authorities hold a discussion on the digital currency. This request was put forth mainly because of the firm’s “troubled past.”

In an interview with WhatBitcoinDid, Caitlin Long, Co-founder of the Wyoming Blockchain Coalition, stated that Libra had its pros and cons, adding that it was a “double-edged sword.” However, the blockchain evangelist continued to assert that this was going to benefit Bitcoin, stating that the social networking platform was “making cryptocurrency a mainstream word.” She added that Facebook would introduce the concept of digitally scarce money to people and that these people would look for the best cryptos that would retain the most value over time. That crypto was going to be Bitcoin, she said.

Long stated,

“This is a detour kind of like Andreas analogy, it’s the intranet before internet. We’ve even seen it in this industry, it’s blockchain not Bitcoin but people are coming full circle back around to Bitcoin. These are detours that are ultimately helpful to gaining adoption and wider support, but they’re not where we end up and I think we will end up in Bitcoin.”

Further, Long was asked whether Libra was going to be its own currency, considering it will not be pegged to a specific currency, but several fiat currencies. To this, she stated that Libra was indeed going to be a currency of its own, similar to Bitcoin. She stated that it was going to function like a “central bank,” remarking that it would be a “private version of a central bank.” Long went on to add,

“They’re going to be managing reserves against the liability. For them it will be the people who own the coins and they will be managing the reserves against that […] they are going to be marketing this in the developing world, this is going to be a developing world concept probably more than a developed world concepts […] so my guess is this is mostly an emerging market phenomenon secondarily a European phenomenon and lastly a U.S. phenomenon.”





Subscribe to AMBCrypto’s Newsletter


Continue Reading

Trending