Litecoin is down by 4 per cent in today’s trading session. This is after yesterday’s aggressive push to the upside that saw Litecoin close the markets with a 6 per cent price gain. Yesterday’s session also stopped a seven consecutive bear run that had seen the crypto prices fall from $64.5 to $43.5, a 31 per cent price drop.
Today’s price drop comes amidst the MimbleWimble privacy function controversy that has seen many exchanges ceasing to support Litecoin transactions. According to reports, Binance and other exchanges have announced they would not be supporting the MimbleWimble privacy feature that allows transactions to be private and untraceable.
Part of the reason why most exchanges are refusing to process Litecoin transactions using the privacy feature is due to new compliance regulations implemented as part of regulating the cryptocurrency market.
In South Korea, Bithumb and Upbit announced they would disable Litecoin transactions due to the privacy feature. They indicated the decision was reached to comply with the country’s anti-money laundering (AML) regulations.
Litecoin is down by 4 per cent today, resuming a long-term bearish trend that has seen the crypto lose 31 per cent of its value in the last eight days. In June, Litecoin is already down by 35 per cent, and the current aggressive bearish trend is looking poised to continue dropping. The June price drop has also resulted in setting a new 2022 price low of $40.30.
Using the daily chart below, my Litecoin price analysis expects the prices to continue dropping after resuming the bearish trend today. I expect the prices to hit and break the $40.7 support level. The prices will also likely trade below the price level. There is a high likelihood that the current strong bearish trend will see Litecoin prices drop to trade below the $35 price level.
However, if the prices reverse and close above the $50 psychological level, then my bearish trend analysis will be invalidated. It will also signal a trend reversal.
This post was last modified on %s = human-readable time difference 09:14