- Litecoin price rises 3% to $182 as bulls attempt to undo Tuesday’s losses.
- Ukraine Parliament passes a bill legalising cryptocurrencies into law.
- LTC’s movement upwards depends on the crucial support area around $178.
Litecoin price is trading at $182.03 on Binance with a bullish bias. Bulls are striving to hold above $180 in an attempt recover the losses incurred during the flash cryptocurrency market crash experienced on Tuesday September 07 that wiped billions of dollars out of the total crypto market value. The sell-off was triggered by technical difficulties in the El Salvador’s Chivo wallet as the Bitcoin law took effect on September 07. Bitcoin led the bloodbath losing as much as 19% to trade below $43,000.
Litecoin shed 18% of its value from $219 opening price on Tuesday to close the day at $178. At some point, LTC dropped 27% to trade just above $160. Wednesday’s bullish session saw bulls struggle to recover and has risen approximately 3% over the last 24 hours.
Strong technical and fundamentals such as Ukraine legalising cryptocurrencies could push the LTC price higher.
Ukrainian Parliament Has Legalised Litecoin
The Ukrainian parliament has passed a bill legalising and regulating Bitcoin and other cryptocurrencies such as Litecoin in the country. This is an important step for the European country as it provides official clarity on the digital assets and which was in a grey area previously.
On Wednesday September 08, the Ukrainian Parliament passed Bill No. 3637 On Virtual Assets that gives the Ukrainian government the ability to legally regulate digital assets. The Bill states that:
“This Law regulates legal relations arising in connection with the turnover of virtual assets in Ukraine, defines the rights and obligations of participants in the virtual assets market, the principles of state policy in the field of virtual assets.”
The bill which was set in motion in 2020 passed with an almost unanimous vote with 276 legislators supporting it and only six voting against it. The bill now heads to the desk of President Volodymyr Zelensky who will not sign it into law.
Previously, Ukrainians were allowed to buy and exchange virtual currencies, but companies and exchanges dealing in crypto were often under close watch by law enforcement because of lack of clear law regarding cryptocurrencies.
However, the law does not make cryptocurrencies legal tender as with Bitcoin in El Salvador. This means that cryptos still cannot be used to pay for goods and services in Ukraine.
This is still a win for the world of cryptocurrencies as the law allows for blockchain companies to legalize individual business processes and work directly with the current banking system.
It also allows citizens to freely buy and trade Litecoin and other digital assets.
The hryvnia remains the only legal currency in the country.
- Are you new to crypto trading? Read our guide on how to buy cryptocurrency to get started.
Litecoin price sits on strong support at $178
The Litecoin price prediction is significantly bullish for the short-term. The LTC/USD price daily chart indicates that after re-testing the May 20 range high at $233.11, Litecoin dropped by more than 30% to lows of $161.92 before closing the day at $178 on Tuesday. LTC bounced off this area on Wednesday but the long upper and lower wicks shows that the buyers and sellers were battling to take control of Litecoin. The bulls had the day as they managed to hold above $178 closing the day at $179.72.
Litecoin price upward movement depends on this crucial support counting that the asset has held on this support in the past to move higher. The latest being the consolidation on September 02 that saw LTC rally by more than 30% from this point reaching a high of $233.11 on September 05.
LTC/USD Daily Chart
Apart from evidence givenby the LTC price chart, the In/Out of the Money Around Price (IOMAP) model by IntoTheBlock indicates that Litecoin support around $178 is strong. According to the IOMAP Chart, this support area sits within the $178 and $183 price range where roughly 243,000 addresses previously bought approximately 3.21 million LTC.
This support is robust enough to absorb any selling pressure trying to pull the price below this point. The IOMAP reveals that that LTCs upward movement will be met by relatively little resistance as compared to downwards.
Litecoin IOMAP Chart
Litecoin Price To Reach These Levels
If Litecoin manages to hold on to this support and closes the day above it, the asset will move upwards with the next key level to watch being the $193 resistance level embraced by the 200-day Simple Moving Average (SMA). A clear bullish breakout above this point will bolster LTC towards the recently set four-month high around $233.
On the flipside, a drop below the $178 support wall will pull the Litecoin price down to tag the 50-day SMA at $177.46 and the 100-day SMA at $166 respectively.
Where To Buy Litecoin Now
If you want to trade the LTC this week, you can do so on several crypto trading platforms such as eToro. eToro is one of the trusted exchange platforms in the crypto space. eToro supports copy trading, which allows new traders to learn from market experts. eToro also charges low trading fees and commissions.
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Nancy Lubale
