Litecoin is once again back to the descending channel, which started forming on July 8.
LTC is trading at $75.69 on Thu, July 12, way lower than the day before, says Dmitriy Gurkovskiy, Chief Analyst at RoboForex.
The bearish trend is quite clear both long and short term. The descending channel may be broken out once LTC is back to $92.00 and above, but after that the crypto is sure to find harsh resistance at 102.00-107.00. Currently, Litecoin is very likely to go plunging to $74.40 after breaking out intermediate supports at $75.00 and $74.85.
$75.00 is the key support now, while the resistance is around $85.00. The MACD is negative on D1, moving along the signal line, still giving a moderate buy signal, while the Stochastic is going down in the positive area, thus confirming the already formed sell signal.
Fundamentally, the news on TokeyPay being ready to become a strategic partner of Litecoin Foundation is worth mentioning. The Swiss based company and the crypto founders aim to acquire WEG Bank, headquartered in Germany, which is already confirmed by both parties. TokenPay and Litecoin Foundation are going to own equal shares of WEG, overall amounting to 90%; this is to happen once they get the regulator’s approval. Initially, TokeyPay bought 9.9% of WEG shares and granted them to Litecoin Foundation after agreeing upon marketing and tech partnership. After that TokeyPay bought 9.9% of shares more. Such staged acquisition can be explained by the applicable laws in German jurisdiction.
Bank acquisition is a long term strategic move by Litecoin Foundation. With the blockchain technology applied, the banking institution may offer more opportunities to its clients, while at TokenPay they also say this will boost the number of debit cards by a few times.
This is exactly what happens when the technologies go beyond cryptos and start working in real financial vehicles. This has already been widely discussed, but, as of now, crypto and token techs in ‘real life’ are quite limited. Starting to apply them in banking is perhaps the best idea of all.
Disclaimer: Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.