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Today's winner:Litecoin Price Analysis - LTC Breaks $200 as Sentiment Starts To Build As Privacy Implementation Draws Nearer | CoinCodexYaz Sheikh
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*Price at the time of writing
Litecoin surged by a strong17% over the last week of trading as the cryptocurrency finally breaks back above the $200 level. The coin is now trading inside a rising price channel as it started to make its way back toward the February highs around $240.
The recent price hike in Litecoin is largely attributed to the fact that the MimbleWimble implementation is drawing nearer. MimbleWimble will provide an opt-in privacy feature on top of the Litecoin network to allow users to hide their transactions on an extension block side-chain. This is a very promising feature for Litecoin as it provides an option to remove the privacy feature if governments come to shut down privacy coins. If regulators start to put pressure on exchanges to de-list privacy coins, the exchanges will always have the option to remove the MimbleWimble implementation on their exchange as it is optional to implement.
David Burkett, the developer behind MimbleWimble, recently stated the code would be ready for review and final auditing on March 15th. The code has already been running on the Litecoin testnet for over three months without any hiccups.
The implementation of the privacy feature has people talking about Litecoin. Data from Santiment suggests that the social volume for Litecoin is back on the rise again as users start to comment on the upcoming feature:
Additionally, it seems that MimbleWinble has brought a great deal of attention to Litecoin in recent weeks as the unique daily active wallets start to pickup strongly:
As you can see, the daily active addresses were relatively low at the start of the year. As 2021 progressed, the daily active addresses started to pick up quite aggressively as more people started to use the Litecoin network again.
Litecoin is now ranked in the 7th position as it currently holds a $10.89 billion market cap value.
Taking a look at the daily chart above, we can see that Litecoin broke above a descending triangle pattern at the start of February as it began its push to create fresh new ATH prices. The cryptocurrency went on to break the January resistance at $185 and continued to surge until it met resistance around $240.
At the end of the month, when BTC started to head lower, Litecoin also started to tank. It continued to drop until support was finally found at $164 at the end of the month, provided by a .618 Fibonacci Retracement level.
At the start of March, Litecoin rebounded from this support as it started to push higher. In the first few days of the month, the coin struggled with the resistance at $192, but this was eventually broke this week as it started to head higher. It is also now trading inside an ascending price channel pattern.
Litecoin is strongly bullish right now. The cryptocurrency would have to drop beneath $160 (.618 Fib Retracement) to be in danger of turning neutral. It would still need to continue beneath $120 (200-day EMA) to turn bearish again.
If the sellers push lower, the first level of support lies at $200. This is followed by $192 (.382 Fib Retracement & the lower boundary of the price channel).
Beneath the price channel, support lies at $185 (May 2018 highs), $177.90 (.5 Fib Retracement), $164.90 (.618 Fib Retracement), and $150 (100-day EMA).
On the other side, the first level of resistance lies at $220 (March 2018 Highs). This is followed by resistance at $240 (February resistance), $250, and $258 (1.618 Fib Extension level).
If the buyers can continue to drive beyond $260, resistance lies at $281 (1.272 Fib Extension - orange), $296 (bearish .786 Fib Retracement), $300, $320, and $331 (bearish .886 Fib Retracement).
Litecoin is also trying to recover against Bitcoin itself. The cryptocurrency had dropped as low as ₿0.0035 during the week, creating a fresh low for the year. However, today, the coin rebounded from this support to reach the resistance at ₿0.00379, provided by a bearish .236 Fib Retracement level.
The coin would need to break the range between ₿0.0035 and ₿0.00379 to dictate the next direction for the market.
Litecoin is currently neutral against Bitcoin. The cryptocurrency would have to break above ₿0.00432 (bearish .618 Fib Retracement & 200-day EMA) to turn bullish in the short term. On the other hand, it would need to break beneath the support at ₿0.0035 to be in danger of turning bearish again.
If the sellers push lower, the first level of support lies at ₿0.0036. This is followed by support at ₿0.0035, ₿0.00338 (downside 1.414 Fib Extension - blue), ₿0.00324 (downside 1.618 Fib Extension - green), ₿0.0032.
On the other side, the first level of resistance lies at ₿0.00379 (bearish .236 Fib Retracement). This is followed by ₿0.004 (bearish .382 Fib Retracement), ₿0.0041 (100-day EMA), and ₿0.00415 (bearish .5 Fib Retracement).
If the buyers can continue to climb above ₿0.0042, additional resistance can be expected at ₿0.00432 (bearish .618 Fib Retracement & 200-day EMA), ₿0.00455 (bearish .786 Fib Retracement), and ₿0.0047 (bearish .886 Fib Retracement).
At CoinCodex, we regularly publish price analysis articles focused on the top cryptocurrencies. Here's 3 of our most recent technical analysis articles: