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Litecoin Enters the Fight Game: What’s Coming Next?

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  • Thomas Hughes
    📈 Price Predictions

    Litecoin enters the Fight Game, becoming the first cryptocurrency to appear on the UFC Canvas

Litecoin Enters the Fight Game: What’s Coming Next?
Cover image via u.today

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Litecoin is making history by entering the mainstream sports world and being the first official cryptocurrency partner of the Ultimate Fighting Championship (UFC).

Litecoin’s logo will be featured on the Octagon canvas on Dec. 29, at UFC 232, which will take place in Los Angeles, with the main event being the championship fight between former UFC Light Heavyweight Champion Jon Jones and contender Alexander Gustafsson.

Whether you’re an MMA fan or not, this is great news for cryptocurrency in general and Litecoin in particular as the fight is expected to be viewed by hundreds of thousands or maybe even millions (attendance and pay-per-view). Bullish? Let’s see what happens after the event takes place.

Chart Analysis – LTC/USD

image

Litecoin, the 8th cryptocurrency by market cap, is currently trading at around $30 after reaching a high at $37.70 just a few days ago. The last 24 hours have been sluggish and mostly sideways, with a drop of 1.75% and the pair is currently in the middle of a bearish retracement after the latest rally.

The current drop is normal after the big climb which took the pair from $23 to $37. The Relative Strength Index breached its 70 level several times, indicating overbought and creating regular bearish divergence (the price was making higher highs and the RSI was making lower highs), so all of this was an early warning that a retracement will occur sooner rather than later.

Considering that people are celebrating the Winter Holidays, we may see continued low volatility but once things are back to normal, if the pair moves above 31.30 and above the 200 EMA (4-hour chart), we will probably see another test of the recent high.

Support zone: 28.70

Resistance zone: 31.30; 200 EMA (4-hour chart)

Most likely scenario: choppy markets, move above immediate resistance once the pair finds support

Alternate scenario: brief drop below 29.70 followed by recovery above it

 

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About the author

Thomas Hughes is an executive editor of U.Today. He is a skilled cryptocurrency trader and technical analyst deeply immersed into the cryptocurrency & blockchain technology area.

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Why China Fever on Bitcoin is Already Dropping After 1 Month of Blockchain Optimism

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  • Joseph Young
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    The so-called “China fever” on crypto like bitcoin has noticeably declined since President Xi’s speech on October 28.

Why China Fever on Bitcoin is Already Dropping After 1 Month of Blockchain Optimism
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Contents

Since Chinese President Xi Jinping expressed his support for blockchain technology on October 28, the so-called “China fever” on crypto like bitcoin has noticeably declined.

The price of bitcoin fell from around $10,600 to $8,500 and cryptocurrencies that are known have Chinese development teams such as NEO, Ontology, and TRON have slightly increased over the past three weeks, but not enough to be described as a speculative mania.

Why demand for bitcoin and other cryptocurrencies is not on the rise

Following the newly established vision of the Chinese government to push the development of blockchain technology, expectations for strengthened momentum of the cryptocurrency market rapidly increased.

Initially, such expectations combined preceded an abrupt overnight increase in the price of bitcoin to above a key “psychological level” at $10,000, but the price fell back to “pre-Xi” levels in a relatively short period.

Global markets analyst Alex Krüger said:
“Have mainland China investors increased their demand for bitcoin? BTC volumes quickly dropped back to pre Xi news levels; online searches in China are back down to pre Xi news levels; website traffic for exchanges catering to China barely changed since the news.

The ‘Chinese tokens,’ NEO, ONT and TRX, have all done well since the aftermath of the news, while VET (a supply chain oriented blockchain) has been cruising on China news. Don't think though this is a sign of a ‘speculative fever’ of any kind.”

The analyst emphasized that prior to the statement of President Xi on the focus of China to facilitate the development and implementation of blockchain technology, the penetration of cryptocurrencies in the region was already high.

Also, most mainland Chinese cryptocurrency investors are said to have been trading digital assets through overseas markets like Hong Kong, purchasing stablecoins like Tether with the Hong Kong dollar.

Hence, it is possible that the public already anticipated the government of China to eventually reiterate its plans to encourage blockchain development with the People’s Bank of China (PBoC) consistently stating that its plans for a state-operated digital currency is in the works.

“It is without doubt that with the announcement of Libra, governments, regulators and central banks around the world have had to expedite their plans and approach to digital assets,” Dave Chapman, BC Technology Group executive director, said.

Is this the end of the Xi-effect?

Some technical analysts have suggested that the upside movement of bitcoin to $10,600 in late October may have not been primarily fueled by the optimism around China’s blockchain development initiative, and that a cascade of short liquidations amidst a build up of sell pressure caused the rally.

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About the author

Joseph Young is an analyst based in South Korea that has been covering finance, fintech, and cryptocurrency since 2013. He has worked with various recognized publications in both the finance and cryptocurrency industries.

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