Litecoin LTCUSD Analysis: Litecoin has been struggling to break above its key resistance levels after Charlie Lee, Litecoin’s founder, announced that he had sold/donated all of his own LTC to avoid any conflicts of interest. What could be next for Litecoin? Here is a quick overview.
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Charlie Lee’s Vision for Litecoin’s Soft Fork
After Lee he has got rid of his own LTC, many market participants worried that he is trying to distance himself from the project. However, he appears to be pointing to the contrary. It seems like he has no intention of slowing down.
In a tweet, on Saturday he laid out his proposal for a soft fork to the Litecoin network. He said he’s “proposing an upgrade to Litecoin with a soft fork.” That will let miners signal their “minimum accepted fee in the block header.” This will let a “fee market” develop without having us decide what the min fee is.
Lee believes the soft fork will also make it easier for users to estimate fees.
The idea is to create competition by allowing miners to set the lowest fee they are willing to accept in the block header.
Some analysts are concerned that such a system could lead to higher fees for mining.
However, considering the overheads of owning mining hardware, combined with the decentralization aspect of cryptocurrency, miners are probably incentivized to act fairly.
Litecoin LTCUSD Price Action
After an initial rally following the Tweets, Litecoin LTCUSD appears to be trapped below the 38% Fibonacci retracement level. At the time of writing, the price has entered the flattening daily Ichimoku cloud. Support levels remain at 50% and 61% Fibonacci levels of $233 and $189 respectively.
A pullback towards these levels could create a delicious buy limit order for investors who are looking to buy at lower prices.
What’s Next for Litecoin?
Litecoin currently stands at the seventh position in terms of cryptocurrency market cap. It is trailing behind Bitcoin, Ethereum, Ripple, Bitcoin Cash, Cardano, and NEM.
Coinbase exchange has recently adopted Litecoin to its crypto base, and they may just have opened doors for others to follow suit.
Litecoin and bitcoin are often called the silver and gold of the cryptocurrency world. However, it appears Litecoin might be separating ways.
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