Introduction: Litecoin Fundamental Analysis
Litecoin is one cryptocurrency that is showing signs of a bullish recovery as technological and mainstream adoption is on the increase. Bearish technical price patterns on the higher monthly chart is already threatened as weekly patterns have given way to bullish dominance. Read further in our Litecoin fundamental analysis as we go through major fundamental events as well as technical price patterns.
Previous Events in the Litecoin Community
Litecoin (LTC): Second Blockchain Week 14 January 2019
The second annual CHAINERS Blockchain Week which took place last month between January 14-18 was one major conference that took place at the Seoul Dragon City Hotel in Korea, with about 30 speakers in attendance. This event initiated the bullish rally currently experienced by the LTCUSD pair.
Potential Risks for February 2019
Daily Chart of the LTC/USD
A breakdown of hidden bullish divergence triggered on January 10 ’19 led to a retracement of Litecoin gains. This retracement ended after a bullish hidden divergence was confirmed by a bullish accumulation pattern and an oscillator (MACD) golden cross on January 24 ’19. The bullish divergence in combination with a breakout of bearish accumulation confirms a double bullish accumulation pattern on the weekly chart which we’ll look at later in this Litecoin fundamental analysis.
Technological Adoption, Updates and Milestones Accomplished on the Litecoin Network
A collaboration between Litecoin and Beam, a software development firm, was announced on the Beam Medium blog post on 7th February ’19. This collaboration is focused on implementing a new protocol named “Mimblewimble” on the Litecoin network which should improve the network’s scalability and privacy. The project is already exploring privacy and fungibility on the Litecoin network and it will be published under an open source license.
On the same date, Litecoin Foundation announced Mimblewimble as an alternative of “Confidential Transactions,” in its own blog post. It also allows for transactions to be “obfuscated however provable,” so as to achieve both increased privacy and avert double spending.
Litecoin foundation attains a major milestone by sponsoring the UFC 232 a major mainstream brand, signifying a major sporting event to be sponsored by any cryptocurrency.
At the event, Bruce Buffer, the renowned UFC announcer in the presence of 15,862 sold out crowd sounded that viewers should take control of their money by making payment with Litecoin.
Sponsorships such as this goes a long way towards helping LTC drive towards mass adoption.
Looking at the monthly chart of LTCUSD, we observe that the bearish trend of 2018 may be coming to an end, as the most recent bearish accumulation resistance of 35.11 is threatened by about 48.7%% price increase from the monthly price open.
Litecoin (LTC) Critical Support and Resistance Levels
Litecoin (LTC) Support
22.26, 29.39, 29.89
Litecoin (LTC) Resistance
94.48, 69.27, 37.00
Read more: Latest Tron (TRX) Fundamental Analysis from Jan 2019
Conclusion and Projection
Going forward, we expect a further increase in the exchange rate of Litecoin following the technical price patterns on the higher monthly and lower daily charts. The weekly chart analysis carried out below throws more light on the buildup of buying pressure.
Weekly Chart of the LTC/USD
A confluence of events is considered to be of high probability from our point of view. The bullish regular divergence triggered in combination with a breakout of bearish accumulation is one of such formations triggered on the above weekly chart.
Double bullish accumulation patterns triggered on January 28 ‘19 reinforced bullish presence as the pair experienced a price increase of 37.5%.