Prices of nearly all crytos tumbled after China Banking Association recently warned member banks of the risks associated with digital currencies. Murmurings of tighter regulations on digital tokens have put pressure on them. Despite such a massive crash, investors and traders continue to be bullish about cryptos.
Cryptocurrency market has been less volatile of late but major digital tokens are down by a third this month, weighed by growing regulatory pressures on the sector. Many digital currencies are trading at half of their peak after gaining in the beginning of this year.
Back home, leading domestic banks are clamping down on customers using bank accounts for cryptocurrency transactions. Major lenders such as HDFC Bank and State Bank of India have sent official notices to customers warning them of curbs, including permanent closure of accounts.
The move comes after the ‘informal’ diktat by RBI issued last week asked banks to stop dealing with cryptocurrency exchanges. The move has seen major backlash from crypto exchanges and traders.
“The weekend was pretty steady with most major currencies moving northwards. We will see this behaviour continue as markets consolidate further and money in the ecosystem evens out. Over the next few days, we will see bitcoin dominance dip and most of that money to flow into Altcoins like ETH and BNB”, said Edul Patel, CEO & Cofounder, Mudrex
Analysts advised investors to remain cautious, despite the belief that the market is likely to ride an upward trend over the next few days, and potentially weeks.
Crypto prices as of 09:50 IST (Source:
coinmarketcap.com
)
- Bitcoin: $34,266.93, down 1.37%
- Ethereum: $2,291.19, up 0.40%
- Tether: $1.00, up 0.05%
- Cardano: $1.54, up 3.30%
- Binance Coin: $309.24, up 0.32%
- XRP: $0.8874, up 5.92%
- Dogecoin: $0.2945, down 1.25%
- USD Coin: $0.9998, up 0.03%
- Polkadot: $19.19, down 1.56%
- Uniswap: $23.64, up 1.74%
ZebPay Trade Desk’s Tech View
Litecoin (LTC) is a cryptocurrency designed to provide fast, secure, and low-cost payments. Behind BTC, LTC is the second most popular pure cryptocurrency. Its success is largely attributed to its simplicity and utility benefits. It is the 15th largest cryptocurrency with marketcap over $10 billion.
The cryptocurrency is based on the Bitcoin (BTC) protocol but differs in terms of its hashing algorithm, hard cap, block transaction time along with a few other technical factors. LTC currently has a block time of just under 2.5 minutes and very low transaction fees, which makes it suitable for micro-transactions and POS payments.
Today, Litecoin is one of the most widely accepted cryptocurrencies, and more than 2,000 merchants and stores now accept LTC across the globe.
Technically, LTC, on the four hourly time frame, made a ‘Hammer’ pattern (trend reversal pattern) at the support level of $117.58 and the prices started moving upwards making ‘Higher Top Higher Bottom‘ formation up to the resistance level of $208.98. Post this, the asset is consolidating and trading in a range from $160 to $200. Hence, breakouts on either side will further decide the trend of the asset.
Key levels
Support: $117 and $155
Resistance: $220 and $247