Key Takeaways
- While the community awaits for MimbleWimble, a team of developers has created a bridge to enable private Litecoin transactions.
- Incognito wallet users will be able to send a receive LTC tokens without the ability of third parties to surveil funds.
- The move could boost the token’s price despite the ongoing corrective period it is going through.
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A new integration is set to allow token holders to transact with Litecoin anonymously. Despite the significance of the news, LTC looks bound for a steep decline before any continued uptrend.
Litecoin to Enjoy Privacy Features
While crypto enthusiasts await the final code for Litecoin’s MimbleWimble protocol this quarter, others are looking for different ways to bring financial privacy to the network.
The Incognito community announced that it would contribute to LTC’s fungibility by offering a new way to transact on the blockchain anonymously. Users will be given a new bridge to send and receive the token at a one-to-one rate within the Incognito wallet.
The move will offer privacy features to prevent third-party surveillance.
“When you send LTC to your Incognito wallet with the new bridge, you receive pLTC. All tokens can be swapped back to standard LTC at any time. Your pLTC will be burned, and standard LTC will be released to your wallet,” reads Incognito’s announcement.
Given the increasing regulation around cryptocurrencies, there has been a spike in demand for censorship-resistant payment solutions. By enabling privacy features within the Litecoin protocol, this cryptocurrency could benefit as Monero has since 2020.
Steep Correction on the Horizon
Despite the significance of the recent developments around Litecoin, LTC’s price seems to have broken out of an ascending triangle in a downward direction.
The consolidation period that began on Jan. 11 led to the formation of this technical pattern. The LTC price made a series of higher lows while the $149 resistance barrier rejected any upward pressure.
The recent spike in the sell orders behind Litecoin allowed it to break below the triangle’s hypotenuse. This cryptocurrency now risks dropping by nearly 22% towards the $114 support level.
This target is determined by measuring the distance between the triangle’s two highest points and adding it to the breakout point.
Due to the high levels of volatility in the cryptocurrency market, the bullish outlook cannot be disregarded.
If Litecoin can regain the $149 resistance as support, the bearish thesis will be jeopardized.
Moving past this resistance barrier could trigger FOMO among market participants pushing prices to $190 or higher.
Disclosure: At the time of press, the author held Ethereum and Bitcoin.