Litecoin Price analysis: LTC/USD recovery stalled as Charlie Lee mulls the idea of miners' donations
- Charlie Lee supports the idea of donating miners' rewards.
- LTC/USD recovery may be limited by SMA50 on 1-hour chart.
At the time of writing, LTC/USD is changing hands at $53.20, down nearly 2% since the beginning of the day. The seventh larges digital asset with the current market value of $4.3 billion has been moving within a short-term bearish trend amid low volatility.
Litecoin may follow the lead of Bitcoin Cash
While commending the initiative of the Bitcoin Cash community to force miners to transfer 12.5% of their revenues, the creator of Litecoin Charlie Lee suggested that miners should donate 1% of their block rewards (0.125 LTC) to the ecosystem development. He also added that the donations should be completely voluntary.
He wrote on Twitter:
I think a better way to fund development is mining pools voluntarily donate a portion of the block reward. How about Litecoin pools donate 1% (0.125 LTC) of block rewards to the @LTCFoundation? If every miner/pool does this, it amounts to about $1.5MM donation per year!
He also added that due to merged mining of Dogecoin and other coins based on Scrypt algorithm, miners are able to receive over 105% of block rewards. What's more pool of miners can decide on the target. of their donations, for example, Litecoin.com or The Lite School.
The community reaction was controversial. Someone supported the initiative, while others expressed doubts and suggested that Lee should have donated the proceeds from selling his coins in 2017.
LTC/USD: technical picture
LTC/USD hit the bottom at $50.65 on January 24 and has been recovering ever since. However, the further upside may be limited by SMA50 1-hour at $53.60, which is closely followed by the short-term downside trend line. Once it is out of the way, the upside is likely to gain traction with the next focus on SMA100 at $55.50 and SMA200 1-hour at $57.00.
On the downside, the support comes at $52.00 ( the lower line of 1-hour Bollinger Band). A sustainable move below this area will take us towards the recent low of $50.65. If the price breaks below $50.00, SMA50 daily at $46.50 will come into focus.
LTC/USD 1-hour chart
Author
Tanya Abrosimova
Independent Analyst
