Litecoin unveiled a partnership with smart contract platform Cardano and a proposed velvet fork. It will unlock new functions and add cross-chain communications, smart contract capabilities, and improved scalability to Litecoin, which is currently the tenth largest cryptocurrency. A velvet fork upgrade does not require consensus as it will upgrade the code of the cryptocurrency but is neither a hard nor a soft work. Miners will be able to continue operations as before, regardless if they decide to upgrade or not.
While Litecoin appears forgotten by many who focus solely on Bitcoin or Ethereum, there have been more exciting and long-term positive developments in this cryptocurrency than in Bitcoin or Ethereum. The velvet fork upgrade will incorporate the Non-Interactive Proofs of Work (NiPoPoWs) protocol. It follows the positive news about the pending launch of MimbleWimble, a much-awaited security and scalability update, currently running on a testnet for over one year.
The forecast for LTC/USD remains bullish following a minor pullback in price action. It remains above its sideways trending Kijun-sen, while the CCI moved out of extreme overbought territory. A breakout above its Tenkan-sen can take the LTC/USD above its Ichimoku Kinko Hyo Cloud and into its horizontal resistance area. Will bulls be able to rally enough strength for a breakout? 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 46.30 to 48.25 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 47.40
- Take Profit Zone: 64.10 – 68.65
- Stop Loss Level: 43.10
Should price action for the LTC/USD breakdown below 46.30 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 43.10
- Take Profit Zone: 33.80 – 36.80
- Stop Loss Level: 46.30
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