• The Mimblewimble-fueled privacy launch of Litecoin was announced to launch on September 30 as a testnet. 
  • There are several issues raised by investors about the upcoming privacy feature.

Mimblewimble is a protocol designed to achieve various improvements like greater scalability or privacy. The founder of Litecoin, Charlie Lee, has been designing a Mimblewimble add-on block for quite some time. The initial testnet launch was set for September 30. David Burkett, the developer of the privacy coin Grin, stated:

What makes Mimblewimble great at scalability and many things is that you can delete a coin when you spend it. So they all stay in the chain. You no longer need to remember and know that money. So when you do your first synchronization, you can’t even get that coin… You don’t know anything about it. You don’t even know if it exists or not. You only get the unspent output named UTXO

However, the most controversial feature of the new protocol is privacy. Charlie Lee has mentioned several times his intentions with Litecoin stating:

My ultimate goal is financial privacy for everyone, and I would love nothing more than to see mimblewimble on Bitcoin itself. Getting MW added to Litecoin seemed like the obvious next step.

If Litecoin truly becomes a privacy coin, there is a risk that many exchanges start delisting the digital asset due to regulatory concerns. Nonetheless, many privacy coins have succeeded already, like Monero and Zcash. 

How is Litecoin doing right now? 

It seems that the start of the month was positive for most cryptos, especially Litecoin, which is up more than 3% in the past 24 hours. 

LTC/USD daily chart

ltc price

On the daily chart, the price of Litecoin has just climbed above the 200-SMA, which was acting as a strong resistance level for the past week. The next resistance point is at the 100-MA, close to $50. The MACD has turned bullish for longer than five days. The last time this happened was on July 22 when LTC rallied 60%. 

LTC IOMAP Chart

ltc price

The In/Out of the Money Around Price chart by IntoTheBlock shows a lot of support on the way down, especially between $44 and $46, where 132,000 addresses bought more than 3.4 million LTC. If bulls can defend the 200-MA on the daily chart and turn it into support, a small rally towards $50 is likely. 

LTC New Addresses

ltc price

Furthermore, looking at the number of new addresses joining the network, we can see a significant growth starting on September 13 from a low of 39,000 to 62,000 currently. The uptrend has slowed down in the past few days, but overall remains strong and shows great interest from newcomers in Litecoin.

LTC/USD 4-hour chart

ltc price

Although Litecoin has managed to confirm an uptrend on the 4-hour chart with higher highs and higher lows, it is currently facing strong resistance at $49. Another leg up until $49 is likely; however, the IOMAP chart shows a good amount of resistance at this level, where 1.8 million LTC were bought.

A rejection from $49 will push LTC down to the 100-MA at $46, and speculation about whether the digital asset will be delisted from exchanges will also increase selling pressure.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Three on-chain metrics suggest Bitcoin price has bottomed, here’s where BTC is going next

Three on-chain metrics suggest Bitcoin price has bottomed, here’s where BTC is going next

Bitcoin price action has spiked 5% over the last 24 hours, hinting at the start of an optimistic scenario. Previous publications have already explored why BTC is ready for a bear market rally from both short-term and long-term outlooks.

More Bitcoin news

FTX Latest: Former CEO Sam Bankman-Fried explains reopening withdrawals of Bahamian arm

FTX Latest: Former CEO Sam Bankman-Fried explains reopening withdrawals of Bahamian arm

FTX Digital Markets filed for bankruptcy on November 16; however, withdrawals for some will be resumed temporarily. Former FTX head Sam Bankman-Fried attempted to inform Bahamian regulators beforehand but to no avail.

More Cryptocurrencies news

Arguing the case for a Cardano price pullback to $0.35

Arguing the case for a Cardano price pullback to $0.35

Cardano price has produced four lower highs throughout the month, with three connected by a recently breached trendline. A hurdle above $0.322 could create an additional 12% upswing. A four-hour candlestick close below the $0.304 level would invalidate the bullish potential.

More Cardano news

Luna Classic Price Prediction: 10% drop then a market reversal

Luna Classic Price Prediction: 10% drop then a market reversal

Terra's Luna Classic price has been trading range bound for over a week. The consolidating range has produced higher highs and higher lows following each change of trend. A breach of $0.0001690 would invalidate the bearish triangle thesis.

More Luna Classic news

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

BTC is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read full analysis

BTC

ETH

XRP