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.

Tanya Abrosimova Independent Analyst

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.