Litecoin Falls After Litepay Fiasco

FXOpen

Litecoin prices were the big mover during the past week as the crypto got aggressively sold. To be fair part of this was caused by bitcoin losses, big brother lost 10 percent of its value since last Tuesday. Altcoins tend to follow bitcoin prices.

Bitcoin Down 10 Percent

Bitcoin is down by close to 10 percent since our last update, from $8,839 to $7,948 dollars right now. The downtrend noted in last week’s article remains in place for BTC/USD.

btcusddaily-mar29-copy

To end it the bulls need to push bitcoin back above the $9,165 swing high. A rally beyond the $9,887 swing high is needed for a new uptrend. However due to the proximity of the $10,000 round figure, its likely that many will wait for its break before committing to the rally. Resistance higher up can be found at $10,680 dollars, followed by the double top around $11,769 dollars per coin. A breakout above here may lead to more gains.

On the lower end we have support at $7,700 dollars. This level was tested twice during the past 48 hours and seems to be holding, for now. Further down we have more support at the $7,287 swing low, followed by the major crash low at $5,980 dollars. Of course the round figures at $7,000 and $6,000 dollars may act as temporary support as well. On the longer-term charts the picture is mixed. The weekly chart is range-bound while the monthly is still showing a bullish bias.

Litecoin Falls After Litepay Fiasco

Litecoin fell to a low of $129.31 earlier today as the bleeding continues. Since last Tuesday the altcoin lost over 22 percent of its value. Given the magnitude of the loss (double that of bitcoin) it seems that the Litepay fiasco was a major driver here.

ltcusddaily-mar29-copy

On Monday the Litecoin Foundation came out with a statement regarding the company. According to the Foundation, Kenneth Asare, CEO of LitePay, informed them that he has ceased all operations and is preparing to sell the company. The Foundation apologized for not doing enough due diligence in this case. In early February Litepay was touted as a revolutionary LTC payment provider, causing a short-term surge in the value of LTC/USD. The Litecoin Foundation and some public LTC figures like Charlie Lee initially gave the company some free publicity, later apologizing for this move.

Now with the company closing down that hype completely fizzled out. Technically just like BTC, the downtrend in Litecoin continues for another week. To end it we need a breakout above the $174.22 swing high. A new uptrend requires a move beyond the $193.70 swing high. On the longer-term weekly and monthly charts LTC/USD is still in rally mode.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Cryptocurrencies

Bitcoin Price Recovered over the Weekend, But Market Anxiety Remains Correction in Crypto Markets: BTC/USD Rate Drops to $60,000 BTC/USD Analysis: Bears Have Become More Active Near the $70,000 Level Today Is an Ethereum Update. ETH/USD Is Above $4,000 After Updating the Historical High, the Price of Bitcoin Collapsed by 14%

Latest articles

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold
Financial Market News

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • NIKKEI-225 Analysis Indicates Possibility

Forex Analysis

Commodities and European currencies Test Key Supports

On the eve of the Easter holidays, the main currency pairs have slightly slowed down the development of the main trends and are consolidating near key ranges, the breakdown of which could provoke a change in the vectors of medium-term

Shares

Stock Market Analysis: NVDA Losing Leadership?

Since the start of the week, the S&P-500 Index (US500) is up about 0.58% while NVDA's share price is down about 3.8%. This is a worrying sign for Nvidia stock investors — could it be a sign

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.