Litecoin may undergo a soft fork to enhance security
|- Litecoin network may undergo soft fork at the same time with Bitcoin
- LTC/USD recovery is limited by a psychological barrier of $60.00.
Litecoin, the 7th largest digital coin with the current market value of $3.6 billion, has stayed mostly unchanged in recent 24 hours. At the time of writing, LTC/USD is changing hands at $57.25, off the recent high registered at $63.17 on January 17.
The coin has been range-bound with a bearish bias, moving in sync with the market. Litecoin's price movements are affected mostly by speculative sentiments and technical factors.
Litecoin's soft fork is coming
Litecoin community on Reddit has been discussing the possibility of Litecoin soft fork with the aim to activate 'Schnorr-Taproot' upgrade together with Bitcoin. The roll-out of Schnorr signatures and Taproot schemes may enhance Litecoin security and scalability. Also, Schnorr/Taproot upgrade will allow for new multi-signature solutions
The Reddit user Losh11 believes that neither Bitcoin nor Litecoin will have issues with implementing these upgrades.
Personally I don't think there will be any issues with Bitcoin activating Schnorr/Taproot. We will likely activate Schnorr/Taproot at a similar time.
According to cryptocurrency analyst Lucas Nuzzi, the upgrade may soft-fork the Bitcoin network in 2020.
LTC/USD: technical picture
LTC/USD topped at $63.17 on January 17, however, the bulls failed to hold the ground. The coin slipped back below $60.00 level to trade at $57.25 at the time of writing. The local support is created by psychological $57.00, while the next bearish target comes at $50.50. This area is reinforced by a combination of SMA100 daily and the middle line of the daily Bollinger Band. Once it is broken, the sell-off may be extended towards $50.00 and $45.70 (SMA50 daily). This area is likely to serve as a strong hurdle for the sellers and create an incentive for recovery.
On the upside, the initial resistance is created by the middle line of the 4-hour Bollinger Band at $59.00. A sustainable move above this area is needed to retest $60.00 and move to the recent high of $63.17. The ultimate bulls' goal is created by SMA200 daily and the upper line of the daily Bollinger Band at $64.24.
LTC/USD daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.