Litecoin Holds Position at $35, Approaches Triangle Breakout

Litecoin Holds Position at $35, Approaches Triangle Breakout

Litecoin (LTC) price has been narrowing to $35 since the plunge seen last week. The cryptocurrency’s support was found at $25. The rebound that followed went past $30 but the currency struggled to break through the $40 resistance.

The lower high and higher low pattern formed in the last seven days resulted in the development of a symmetrical triangle pattern.

LTC’s consolidation in the $35 zone reflects a breakout combined with a triangle trend, which is likely to send LTC / USD to a $50 and $60 range trajectory.

The immediate upside is limited to the 50 Simple Moving Average on the 4-hour chart. Thus, breaking through $40 would certainly push the currency upwards. However, sellers should be ready to the resistance at the 100 Simple Moving Average.

Technically speaking, the upward trajectory of the Relative Strength Index (RSI) from 14.00 (last week’s lows) to levels above average (50) indicates that, at least for now, bulls control Litecoin.

Unfortunately, the volume is still small due to uncertainty about the Coronavirus pandemic. Many investors are scared to enter the market as further losses correlated with epidemic are anticipated in the crypto and equity markets.

Charlie Lee proposes 1% mining tax

Late in January, Charlie Lee, creator of Litecoin, suggested that miners should donate to finance the cryptocurrency development project. 

“How about Litecoin pools donate 1% (0.125 LTC) of block rewards to the @LTCFoundation? If every miner/pool does this, it amounts to about $1.5MM donation per year!” Lee said.

It seems that Lee was not the first one to propose donation to support the crypto business. Bitcoin Jesus Roger Ver had previously suggested a 12.5% tax on block mining rewards.

Unlike Bitcoin Cash, LTC miners can freely decide where to pay the tax, such as Litecoin.com or the Lite school. However, in the case of BCH, a Hong Kong corporation will collect the funds to legally distribute them.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.