Litecoin Price Surge Sparked by Litepay Tweet
Litecoin Price (LTC) News and Talking Points
- Litecoin price rallies by 50% with further gains expected ahead.
- LitePay payment system may be a game changer.
Litecoin (LTC) Boosted by New Payment Infrastructure
A near 50% increase in the price of Litecoin (LTC) over the last two days has been stoked by a tweet sent out from the LitePay Twitter account. The payments system LitePay, first announced at the end of 2017, will allow businesses and users to use Litecoin as a method of instantaneous payment, and according to the tweet will be operational on February 26.
According to the company’s website, customers and businesses can use LitePay's retail, ecommerce, billing, and donation tools to “accept payments from customers anywhere on earth. Receive settlement from Litecoin payments directly to your bank account in your own currency, with zero price volatility or risk.”
Customers will also be able to use official Litecoin debit cards issued by VISA.
A look at the chart below shows LTC making a strong break above the recent downtrend, hitting a one-month high. The token has also traded through the 50% Fibonacci retracement level ($211) of the November 2 – December 19 rally when LTC jumped from $50 to an all-time high of $371. Any LTC pullbacks should find support at $211 with the 61.8% Fibonacci level at $173 providing further strong support. On the upside, $249 and $295 may shield a fresh attempt at the all-time high.
We covered a range of cryptocurrency charts at Wednesday's Weekly Cryptocurrency Webinar and came away with positive set-ups across a range of digital coins including Litecoin (LTC).
Litecoin Hard Fork Labelled a ‘Scam’
We also warned at Wednesday’s Webinar that stories of a potential Litecoin hard fork – Litecoin Cash - should be treated with care after Litecoin founder Charlie Lee tweeted that no fork is planned and that “any forks that you hear about is a scam trying to confuse you to think it’s related to Litecoin”.
Litecoin (LTC) Price Chart Daily Timeframe (September 7, 2017 – February 15, 2018)
Retail Traders Still Heavily Long Litecoin
IG Client Sentiment data show 86.1% of traders are net-long LTC with the ratio of traders long to short at 6.21 to 1. In fact, traders have remained net-long since Dec 25 when Litecoin traded near 253.95; price has moved 12.9% lower since then. The number of traders net-long is 6.5% higher than yesterday and 4.7% higher from last week, while the number of traders net-short is 18.6% higher than yesterday and 30.1% higher from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Litecoin prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current Litecoin price trend may soon reverse higher despite the fact traders remain net-long.
Cryptocurrency Trader Resources – Free Practice Trading Accounts, Guides, Sentiment Indicators and Webinars
If you are interested in trading Bitcoin, Bitcoin Cash or Ethereum we can offer you a wide range of free resources to help you. We have an Introduction to Bitcoin Trading Guide along with a Free Practice Account. In addition we run a Weekly Bitcoin Webinar and have an IG Bitcoin Sentiment Indicator to help you gauge the market and make more informed trading decisions.
What’s your opinion on Litecoin and the latest rally? Share your thoughts with us using the comments section at the end of the article or you can contact the author via email at Nicholas.email@example.com or via Twitter @nickcawley1.
--- Written by Nick Cawley, Analyst.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.