- LTC/USD gained 5.6% on a daily basis, strong resistance ahead.
- Litecoin’s founder claims hat traders and funds deliberately create FUD around Litecion.
Litecoin, the 7th largest digital asset with a market value of $3.3B, is changing hands at $57.24 with 5.6% gains on day-to-day. The coin’s average daily trading volumes are set at $265M, which is in line with the longer-term average. Litecoin continued to recover on Thursday amid altcoins’ bullish run led by XRP. While the tide rises all the boats, the momentum might not be strong enough to drive LTC above the next critical resistance at $59.38 (DMA50) and to $60.00.
Litecoin’s technical picture
As it is clearly visible on a 4-hour chart, Litecoin’s recovery is capped by SMA200 currently at $57.54). The price stays below this line since September 5, while numerous attempts to break it during the previous week turned to be futile. If the positive sentiments on the cryptocurrency markets help to push LTC/USD higher, the above said $59.38 (DMA50) and to $60.00 would come into focus.
On the downside, the local resistance is created by $55.33 (SMA100, 4-hour chart) and $54.89 (SMA50). Once this area is cleared, the sell-off may be extended towards the short-term upside trend line at $52.00.
Charlie Lee busts some Litecoin myths.
Litecoin founder and crypto enthusiast Charlie Lee declared that the coin fell victim to deliberate price manipulation from certain funds and traders.
“Recently, there has been a concerted effort to suppress Litecoin price by people/funds that are shorting LTC and by groups that see Litecoin as a threat. I will clear up this FUD and show why Litecoin has tremendous value,” he wrote in his Twitter account.
He explained that Litecoin’s network is one of the most secure and reliable of all other altcoins, while the statements that the “digital silver” had lost its luster were mere FUD.
Mr. Lee further empathized that Litecoin is one of the most liquid coins listed on all large exchanges all over the world and accepted by numerous merchants.
“Litecoin has a ton of liquidity, which is important for people to get in/out of LTC. It is on practically every fiat and crypto exchange (Gemini soon), even more than ETH.”
He also pointed out that Litecoin functions as a decentralized form o money that can be censored or devalued. The network has been operating flawlessly for seven years now, processing over $200M worth of transactions on a daily basis.