Litecoin managed to rebound today after three consecutive days of losses in the day after the bitcoin halving event. Litecoin mirrored on Sunday the sharp drop in bitcoin, but the drop in Litecoin halted the recent positive momentum for the short term.
Yves Mersch, a member of the ECB governing council, said that the ECB is exploring central bank digital currencies (CBDCs) retail style in the interest of decentralization and general accessibility.
Yves Mersch added: “A wholesale CBDC, restricted to a limited group of financial counterparties, would be largely business as usual. However, retail CBDC, accessible to all, would be a game-changer. So retail CBDC is now our main focus.”
A BIS survey shows that four-fifths of the central banks experimenting now with CBDC tech, and European Central Bank are one of these.
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Litecoin is 2.10% higher at $42.40 as it attempts to regain the 50-day moving average. The technical outlook is bearish now as the LTCUSD hovers below the major daily moving averages. The RSI 14 reversal today gives buyers a positive signal, while a credible close above the 50-day moving average might cancel the bearish momentum at least for the short term.
On the upside, the initial resistance stands at $42.71 on the daily top. In case of a move higher the next hurdle for LTCUSD stands at $46.90 the high from May 10. A move above might attract more buyers targeting $49.20 the high from May 9.
On the other hand, initial support will be met at $41.35 the daily low. Next level to watch on the downside is the low from yesterday’s trading session at $39.37. A break below 39.37 might open the way for a test of the low from April 16 at 38.28.