Source: Yahoo Finance
LTC/USD gained 10% yesterday and increased its market cap to $9.774 billion. Litecoin’s highest market cap was at $14.01 billion.
Analyst Lorenzo Stroe believes that a breakout is on the cards, as LTC/USD has been experiencing a consolidation. In the past week, LTC/USD had lost 11.28%. Now, a symmetrical triangle has been formed on the one-hour chart which seems to be cracking. Stroe believes that the correction can be as much as 16%.
Key resistance levels to take down is $142 and $144, and a successful break past these levels would open the way to $166.
Litecoin was first launched in October 2011, as an early spinoff to the popular bitcoin. The altcoin reached an all-time high of $ 420 on Dec 12, 2017.
In related news, Market Watch reports that a financial regulator from the U.K. Financial Conduct Authority had issued a warning to consumers who had invested in cryptocurrencies and alerted them that they should be prepared to lose all their money. This warning was based upon five concerns, which are consumer protection, price volatility, product complexity, charges as well as marketing materials.
The President of the European Central Bank, Christine Lagarde issued a similar sentiment by labelling Bitcoin a ‘speculative asset’ and calling for more regulation.
When it comes to cryptocurrencies, there seems to be a battle between the old and the new. Are the ‘old guards’ refusing to make way for the new? Or do these concerns have solid grounds? It is without a doubt that tighter regulations are needed when it comes to cryptocurrencies or any other developments in the digital financial landscape. However, every beginning comes with its own sets of teething problems. Similarly, the world could very well be trading using a barter system or even physically gold if positive changes were not made towards printing money.
That being said, the rise of cryptocurrencies would certainly be closely watched in the coming days. Only time will tell if digital money can win the battle of the old versus the new.
Nearer term market movers would be the ongoing battle in the U.S political stage. Outgoing President Donald Trump has just been the first U.S. President to be impeached twice. Results show a bipartisan impeachment, which means that 10 Republicans (Trump’s own party) have supported this decision. However, amidst these political upheavals, traders would also be watching the updates from Joe Biden’s stimulus package announced today. A risk-off sentiment in the market could be a booster for cryptocurrencies.
LTC/USD (as of Jan 14, 2021, 10.25 a.m., GMT +8) - $144.76