Source: PaxForex Premium Analytics Portal, Fundamental Insight
While the overall cryptocurrency market remains under bearish pressures, patient investors and long-term traders have an opportunity to add valuable crypto assets to their portfolios. Litecoin continues to present an excellent buying opportunity as its fundamentals continue to outshine Bitcoin and Ethereum. IZEA Worldwide, a leading provider of influencer marketing services, announced it would accept Litecoin as a payment method. It presents the latest community, which shuns Bitcoin and Ethereum for better options. Litecoin offers faster processing times and lowers costs, making it a preferred payment solution with real-world applications and a growing corporate user base.
Adding appeal to Litecoin is its newly launched Mimblewimble upgrade, following more than two years of development. It allows privacy-oriented transactions on Litecoin, shunning regulators who press for more transparency and staying true to the core of cryptocurrencies. The Mimblewimble Extension Block ( MWEB) supports confidential transactions via user opt-ins and improves the viability as a currency used in day-to-day transactions. Besides privacy features, the upgrade focuses on fungibility and scalability, absent at many competing cryptocurrencies.
Traders should expect more volatility as the Mimblewimble may result in certain cryptocurrency exchanges delisting Litecoin. It would follow the early 2021 delisting of Monero (XMR), Zcash (ZEC), and Dash (DASH) as regulators pressures exchanges to act or face regulatory actions. It highlights the diversions across the cryptocurrency sector among those who prefer the privacy and anonymity promised and those who prefer profits at the expense of users. Litecoin remains ideally positioned to take advantage of its unique position and expand its market share. It trails Bitcoin and Litecoin in market cap but beats them in real-world applications and daily usage as a currency.
The forecast for the LTC/USD remains bullish despite stalled price action in this cryptocurrency pair. After Litecoin rallied 47%+ from its most recent intra-day low, bulls and bears squared off at resistance. The Ichimoku Kinko Hyo Cloud continues to descend, but a bottom is visible by the flattening Senkou Span B. Adding to the growing bullish outlook is the Tenkan-sen and the Kijun-sen, which flatlined. A pending bullish crossover can ignite the next round of buying. The CCI moved out of extreme overbought territory but remains in positive conditions. It may dip below 0, and traders should wait for a move above it before entering their buy orders. Can bulls regain the upper hand and force the LTC/USD into its next horizontal resistance area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000+ pips per month.
Should price action for the LTC/USD remain inside the or breakout above the 112.50 to 136.90 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 123.90
- Take Profit Zone: 179.70 – 200.00
- Stop Loss Level: 97.00
Should price action for the LTC/USD breakdown below 112.50, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 97.00
- Take Profit Zone: 69.75 – 77.90
- Stop Loss Level: 112.50
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
