LTC Price Predicted to Keep Rising After Sparking Crypto Spring — Five Positives from Litecoin
LTC Price Predicted to Keep Rising After Sparking Crypto Spring — Five Positives from Litecoin

Bitcoin Drops to Support. Bullish Pressure Increases

  • Thomas Hughes

    Bitcoin dominance remains steady at nearly 52% and a clear sign the market is ready to move higher once a catalyst emerges

Bitcoin Drops to Support. Bullish Pressure Increases
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On Sunday, Nov. 11, the Government of Singapore announced a major blockchain breakthrough as it successfully deployed a Delivery versus Payment (DvP) mechanism. This is an automated way to perform rapid settlements of tokenized assets between Singapore’s Government and the Singapore Stock Exchange (SGX).

Sopnendu Mohanty, who is fintech chief at the Monetary Authority of Singapore, iterated:

“This project has demonstrated the value of blockchain technology and the benefits it can bring to the financial industry in the short to medium term.”

While this particular development is not directly tied to one cryptocurrency, it solidifies the status of blockchain technology and marks one step closer towards mass adoption. The effect is most likely long-term and will be felt most by the world’s leading cryptocurrency, Bitcoin. Bitcoin dominance remains steady at nearly 52% and a clear sign the market is ready to move higher once a catalyst emerges.

Charts at a Glance

Charts at a Glance

BTC/USD was stagnant over the last 7-day period, posting a negligible change of only -0.69%. It has been lingering close to support without clear direction, especially during the last couple of days, and may continue to do so in the near-term.

It must be noted that the pair has touched a long-term bullish trend line and has shown rejection at 6300 horizontal support (which coincides with the trend line). This price action formed a higher low, which is usually a pattern that predicts a bounce higher from the current location. Of course, technical analysis is not an exact science, and this movement doesn’t indicate 100% that higher prices will follow. However, as long as the trend line and 6300 support remain intact, our bias is bullish.

Support zone: 6300 and the bullish trend line

Resistance zone: bearish trend line (minor resistance) followed by 6465 in the longer term

Most likely scenario: break of immediate resistance and move towards 6465

Alternate scenario: continuation of the current choppy movement, with a possible break of 6300

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Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?

  • Yuri Molchan

    Stablecoins show hardly any volatility compared to Bitcoin and altcoins, many are hoping that they will be able to bridge new crypto economy and regular fiat money

Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?
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Bitcoin, the father cryptocurrency, emerged in hope that it will remove all intermediaries in electronic commerce that cut off their share of payments. BTC was perceived as a P2P way to replace fiat cash in an electronic format, which would enable one party to pay another without any financial institution or payment platform which would demand its share of a transaction as a reward for its services.

What is wrong with Bitcoin

For quite a while Bitcoin was performing the way the crypto community expected. But the situation changed later – BTC rate became weaker, thus bringing down its financial and economic reliability, when it gets to be used as a regular means of payment.

You cannot have a currency that would cost like a British castle today, a gram of gold – tomorrow and a pack of French fries the day after.

At that point practical fintech minds came up with an idea of creating something which would become a breakthrough in the universe of crypto – a so-called stablecoin.

Will stablecoins solve the volatility problem?

Technically, stablecoins are protected from the volatility roller-coaster that Bitcoin and other cryptos love to ride. They are programmed to keep their prices stable and investors now are largely attracted to this new type of digital assets.

Stablecoin does not show any volatility in its monetary value, since it has a fixed connection to an asset it is pegged to. The major goal of using stablecoins is taking the best from decentralized crypto coins and combining it with a constant value. Thanks to it, stablecoins can be used as a reliable means of trade.

Asset-pegged stablecoins

Asset-backed ones get their value from an asset as can be understood from the name. An asset provides the necessary value to a coin, as well as the necessary legitimacy.

A great example of an asset-pegged stablecoin is Tether (USDT). In spite of a series of scandals at the end of last year, it remains the most popular stablecoin in the crypto market.

Recently, it has partnered with the Tron Foundation to launch a Tron-based stablecoin.

Other examples are TrueUSD (TUSD), USD Coin (USDC), the Gemini Dollar (GUSD), and the Paxos Standard (PAX). They are all pegged to the USD.

Crypto-backed stablecoins

Some digital coins work in a similar way to fiat-backed ones, however, they are pegged to collateral crypto. That means that crypto assets that ensure the value of such stablecoins are stored in a wallet similar to escrow.

A good example of a crypto-pegged token is Maker, which is ranked 16 on CMC.

Algorithmic stablecoins

Even though, stablecoin can be interesting at first thought but the way they are built goes against the principle of decentralization that crypto coins have as a foundation. Thus, many crypto fans and evangelists are positive that stablecoins must be linked towards not a centralized asset but a computer algorithm which takes value from a balance between supply and demand.

Basis is now considered the most promising algorithmic stablecoin of all.

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Can stablecoin ensure smooth future for the crypto industry?

The primary goal of all crypto assets was and remains to come up with virtual asset that would be liquid enough and not vulnerable to market volatility. From this point of view, stablecoins are a dream of all crypto fans and evangelists of a decentralized economy.

Apart from the potential to conduct crypto transactions smoothly, experts believe it can bridge the two worlds – fiat and crypto, bringing them a mutually beneficial coexistence. However, that may take time.

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