Key Takeaways:
- Litecoin launched its much awaited Mimblewimble update .
- However, its token’s price action showed no reaction to the news as it continues to struggle with immediate resistance.
NEW DELHI (CoinChapter.com) — Litecoin (LTC) launched the Mimblewimble update on its network after nearly two years of development.
Mimblewimble’s integration would introduce more privacy-oriented transactions on the Litecoin network. In detail, an anonymous developer ‘Tom Elvis Judeso’ created Mimblewimble and took its name from the ‘tongue-tying’ spell in Harry Potter.
It combines different privacy-centric technologies, such as a coin mixer (CoinJoin) and Confidential Transaction, a service that makes transactions unknown. Moreover, the protocol’s confidentiality feature helps conceal transaction information.
The upgrade comes in the form of Mimblewimble Extension Block (MWEB). The Extension Block would allow the network’s users to opt-in to confidential transactions. The project’s lead developer, David Burkett, believes the upgrade would improve Litecoin’s status as a currency for everyday transactions.
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It is important to note that MWEB would not be available for use just yet.
Coins that promote anonymity, also known as privacy coins, are under intense scrutiny from governments and regulatory bodies. However, in addition to anonymity and privacy, MWEB’s helps improve the network’s scalability.
Litecoin Price Chart
Litecoin’s native token LTC’s price action did not react to the news of the Mimblewimble. In Jan, LTC prices fell nearly 38%, going from the monthly high of $154.8 on Jan 17 to reach $96 on Jan 22. LTC prices are currently struggling to move above immediate resistance at $112.8
If the Litecoin token flips immediate resistance, the next price target for LTC is around $119. Furthermore, a sustained buying spree from bulls could boost prices to $127, just above Litecoin’s 26-day exponential Moving Average trendline.
The relative strength index for Litecoin is currently in the neutral region, clocking 34.75 on the daily charts. On the other hand, LTC has immediate support at $105, a price level that survived multiple tests from the token during the follow-up of the Jan 21 crash.
However, if traders take to profit-booking on rallies, LTC could see prices falling to $99.7, a price level that LTC last reached in Dec 2020. Notably, Litecoin’s 100-day moving average line will eventually close below its 200-day MA, signaling a bearish crossover called the death cross.
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Traders often consider a death cross as a sell signal.
Meanwhile, trend-based momentum oscillator MACD currently forecasts bearish momentum for Litecoin, but it seems to be weakening. Bars on the MACD histogram, which charts the difference between the MACD line (12-day and 26-day difference of EMA) and the MACD signal line, are contracting.
In detail, contracting bearish bars indicate strengthening bullish momentum for an asset. However, Litecoin would need strong bullish tailwinds to avoid further downside movement, given the strong immediate resistance and the looming death cross.
At the time of writing, LTC was trading at $109.32, up 0.58% on the day.
