Litecoin price analysis: LTC/USD follows the trend

Litecoin's privacy features on the way

Litecoin Foundation has started working in the implementation of Mimblewimble extension blocks to enhance the privacy of the sixth-largest digital asset. The new feature was announced by Littecoin's creator nearly a year ago, but the development started only in December 2019. 

The Grin developer David Burkett has been engaged in reorganizing the code that will be shared between Litecoin and Grin++. Meanwhile, the Foundation has started accepting donations to finance the development and provide Burkett with enough funds to finish the work. 

LTC/USD: technical picture

Litecoin hit the intraday low of $38.76 and recovered to the area above $40.00 by press time. LTC has been moving in sync with the broader market, driven by sentiments and technical factors. For the upside to gain traction, we will need to see a sustainable move above $41.50. This barrier is created by a combination of SMA100 (Simple Moving Average), SMA200 and the upper line of the Bollinger Band on a 1-hour chart. Once it is out of the way, the upside is likely to gain traction with the next focus on $43.00 (the highest level since December 31).

On the downside, a sustainable move below $40.00 will worsen the short-term technical picture and bring the recent low of $38.76 back into focus. This support is followed by $37.90 ( the lower line of the daily Bollinger Band) and $35.98 (December 18 low).

LTC/USD, 1-hour chart