Litecoin Price Spikes Above $80 on Bank Acquisition News

Omkar Godbole
Jul 11, 2018 at 15:00 UTC
markets

The price of litecoin spiked to $81 on Wednesday amid notable news for the cryptocurrency often called the silver to bitcoin’s gold.

The world’s sixth-largest cryptocurrency by market value looks to have picked up a bid on reports that the Litecoin Foundation has acquired a 9.9 percent stake in Germany’s WEG Bank through a new partnership with crypto-to-fiat payments provider TokenPay.

The strategic partnership has opened the doors for new consumer-focused crypto payment solutions, and, according to litecoin founder Charlie Lee, is a “huge win-win” for all parties.

While the news has certainly brought cheer to the battered litecoin bulls today, the technical charts remain biased to the bears.

At press time, LTC is trading at $79.50 – up 4.73 percent on a 24-hour basis, having lost more than 50 percent in the last two months. Trading volume for the last 24 hours is stagnant at just over $3 billion, according to CoinMarketCap.

Daily chart

Litecoin’s decline from the session high of $81.00 marks a failure on the part of the bulls to cut through the falling trendline resistance.

The chart also shows a bearish crossover between the 5- and 10-day moving averages (MAs).

Further, the long-term MAs are positioned one below the other and are trending south in favor of the bears.

Thus, the path of least resistance is to the downside.

Weekly chart

On the longer-term chart above, the 5- and 10-week MAs are sloping downwards, indicating a bearish setup. The relative strength index (RSI) is hovering below 50.00 (in the bearish territory).

View

  • A break below $75.42 (today’s low) would bolster the already bearish technical setup and could yield a drop to $69.00 (100-week MA).
  • Only a daily close (as per UTC) above the falling trendline would confirm a short-term bearish-to-bullish trend change.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Litecoin image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.


This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.