Litecoin Price Dipped 4% Hinting to Break Multi-Week Range
Litecoin (LTC) is trading almost 3.5% lower as the crypto markets slide lower. This was due to fears that the major COVID-19 outbreak is not yet over. Also, LTC devs continue their work on a Litecoin 2.0 upgrade.
LTC’s creator, Charlie Lee, stated that they designed the 2.0 upgrade to enhance the cryptocurrency’s scalability and privacy. The upgrade, called MimbleWimble, will make Litecoin significantly more scalable than other similar protocols like Monero and Z-Cash.
Lee noted, “It does privacy scare very well compared to other implementation.”
He also left some comments on potential risks. “It highlights hidden inflation, which is a usual bug that affects privacy coins and gives hackers a chance to forge unlimited coins.”
But Lee explained that the risk must be manageable as the privacy update would affect only the MimbleWimble extension block. Fortunately, it won’t touch the crypto’s main layer.
As the creator said, Litecoin might benefit from it as people call it ‘boring’ because ‘build fast and break things’ is not a proper approach for financial assets. In the previous month, LTC Foundation collaborated with Atari, allowing Litecoin to become a payment option for Atari’s products.
He said, “You want money to be stable, and you want it to work. Litecoin has worked flawlessly over the past nine years.”
MimbleWimble in Privacy
MimbleWimble aims to improve the scalability, fungibility, and privacy of Litecoin. The name comes from a tongue-tying curse in Harry Potter movies that restricts a person from talking about a specific subject.
In addition, the update includes a blinding factor that ciphers the transaction using the transaction participant’s public and private keys. And this factor also shifts the addresses, and only the sender and the receiver know the parties inside.
Since Lee is a ‘benevolent dictator’ over the Litecoin protocol, the digital currency will get upgrades more effectively than Bitcoin (BTC).
He mentioned that it takes forever to have everything implemented on BTC because consensus is slow. However, in the case of Litecoin, if they wish to do something, they could move faster.
He then mentioned that he would step down from LTC sometime in the future. While the cryptocurrency continues to get more exposure over time, there would be less reason for Lee to stay.
LTC Price Follows Bitcoin
The Litecoin price dipped about 3.5%, following Bitcoin and other major digital assets in taking a step lower. Also, the number of COVID-19 infections has sadly increased in the last couple of days. As a result, it pushed the stock market lower.
Looking at the trend line since February, the crypto market tends to move lower in risk-off sentiment.
The price action might now close below the 100-DMA. And this will likely invite more selling pressure. Based on the chart, the sellers are also threatening to break under the triangle’s supporting line around the $42 mark.
With that, traders seeking to invest in Litecoin need to look at $39.50 as one of the levels that offer an attractive risk-return ratio.
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. Subscribe now and receive FREE updates on the market today!