- Paypal now allows trading and holding Bitcoin, Ethereum, Litecoin and Bitcoin Cash
- Yesterday’s high of $66.66 is the highest LTC traded since August
- A weekly close above $62 could facilitate a new wave of LTC buying
Litecoin (LTC) price is trading more than 12% higher this month as the bulls attempt to break the key resistance in the short-term.
Fundamental analysis: Paypal’s new crypto update will allow trading of BTC, ETH, BCH and Litecoin in the U.S.
Paypal’s latest update will allow trading and holding of several cryptocurrencies including Bitcoin, Ethereum, Litecoin and Bitcoin Cash. The payments services provider has been testing its crypto features on a small number of users from October until now and following the new update, PayPal users will be able to trade these cryptocurrencies on the platform.
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However, the new crypto update will be available only in the U.S. for now before it rolls out in international markets in the first half of next year. PayPal consumers in the states will be able to use the crypto on the platform “as a funding source to pay at PayPal’s 26 million merchants around the globe.”
The online payments giant said that merchants will not have “additional integrations or fees, as all transactions will be settled with fiat currency at their current PayPal rates.” PayPal may introduce some changes to the way crypto works with the platform until 2021.
According to its announcement from October, the platform will charge no service fees for trading crypto until the end of this year. For the time being, Paypal will charge no fees for holding crypto in the account. The company also said it acquired a “first-of-its-kind conditional Bitlicense” by the New York State Department of Financial Services (NYDFS).
The goal of this agency is to “continue to encourage and support financial service providers to operate, grow, remain and expand in New York and work with innovators to enable them to germinate and test their ideas, for a dynamic and forward-looking financial services sector, especially as we work to build New York back better in the midst of this pandemic,” said Linda A. Lacewell, superintendent at NYDFS.
Technical analysis: A break nearly completed
Litecoin price has corrected sharply lower today after breaking out yesterday to close 8.68% higher. Yesterday’s high of $66.66 is the highest LTC traded since August. The buyers are now working to secure a weekly close above the $62.00 mark, an area that hosts the key short-term support.
The 100-DMA comes just below the $61.00 handle while the descending trend line comes a bit higher. A weekly close above this support zone could easily facilitate a new wave of LTC buying towards next targets at $71 and $84.
Summary
Paypal launched a new update that will allow holding and trading of several cryptocurrencies on the platform. The new is now available only in the U.S. before it rolls out in other parts of the world in the first half of 2021.