Litecoin Price Goes Up to $42 But Faces Strong Resistance
Litecoin (LTC) price is climbing from about $41 to where it recently perched at $41.09. This is an increase of just more than two and a half percent.
Following a lot of altcoins experiencing extreme losses the previous month, now they make strides towards recovery. Nearly all major altcoins are recording gains following the footsteps of Bitcoin (BTC).
In addition to that, analyst David Smith has taken a look at the technicals and thinks the market’s current performance is likely to continue. Based on his analysis, the Litecoin price retraced from its lower boundary of the channel.
Then, if LTC successfully passes the midline of the channel, it becomes increasingly likely to see sustained growth. As a result, it can consider taking a long position. On the other hand, there is another opportunity to go long, presenting itself if it sees a correction from the lower boundary followed by a retracement.
Also, Alex Clay made an equally bullish stance. He explained that the Litecoin price had broken the ascending triangle. And now, it faces strong resistance. In case the coin can muster the strength to push through, it can take a long position. And if the price undergoes a correction to its support line, followed by a confirmed retracement, they will have another chance to go long.
With this, Oguzhan Sengor analyzed the long-term price trends of Litecoin and saw a somewhat bearish conclusion. Based on the monthly chart, the analyst believes the Tom Denmark indicator, measuring the demand for the underlying instrument, has closed in the red for the past month. And this suggests a bearish signal for the medium term.
Moreover, Litecoin is under the moving average, another bearish indicator. Therefore, the analyst thinks the LTC price will decline to $13 in the medium term.
Tether Treasury
Elsewhere, new research indicates Tether Treasury is not pumping Bitcoin’s price, as opposed to popular belief.
Based on the new study from the Centre for Economic Policy Research, stablecoins are not fueling the price of Bitcoin and other cryptocurrencies.
UC Berkeley and Ganesh Viswanath-Natraj from the Warwick Business School Academics, Richard Lyons, looked at the issuance of Tether (USDT) and other stablecoins during the past three years. And this includes the price pump in late 2017.
Contradicting to most people believe that the freshly minted batches of Tether manipulate the Bitcoin price, the researchers revealed that there is a slight correlation between the prices and new stablecoins issuance.
The researchers said, “Our bottom line: We find no systematic evidence of stablecoin issuance driving cryptocurrencies prices.”
Furthermore, the researchers studied different trading data and patterns between Tether and other crypto markets. And they found out that investors issued and used stablecoins the way they must, as a stable store of value and a safe haven from market volatility.
They stated, “In periods of risk, some investors will choose to exchange into a better stone of value.”
Then, the portfolio rebalancing toward Tether and other stablecoins gives this function with slight intermediation costs. And they argued that stablecoin issuance is a response to the market demand.
