The major headline today not only for Litecoin but for the entire crypto-world has got to be the abrupt closure of LitePay.
Yes, you read it right. LitePay, the same company and product that Litecoin holders have been eagerly anticipating for release just one month ago has closed! An official statement from the Litecoin Foundation website states that LitePay has ceased all operations and the CEO is preparing to sell the company. As incredulous and sudden as this may sound, it is reality. It is a high profile project after all. Both Charlie Lee and the Litecoin Foundation have each apologize for failing to conduct due diligence on LitePay.
Still, Litecoin holders are left to deal with the aftermath. At the time of writing, price of Litecoin has plunged to $140 to the US dollar, while against BTC, the one we've been tracking these past few weeks, it is now below the 0.018 support level. Below is the daily chart for your reference:
As can be seen below, price has breached two uptrend indicators -- first, the uptrend channel and second, the 0.018 support level. It is quite possible that we may see further price weakness, as both the fundamental and technical picture are not rosy to warrant a bullish move at the moment. Let us see how this day closes.
If you have any thoughts on this latest news, do share them in the comment section below. As always, trade carefully everyone!
Further reading:
- https://www.ccn.com/we-got-too-excited-charlie-lee-litecoin-foundation-apologize-after-litepay-vanishes/
- https://www.cnbc.com/2018/03/26/cryptocurrency-litecoin-falls-after-processor-litepay-closes.html
Risk Warning: All comments, charts and analysis on this post are purely my own and should in no way be treated as recommendations or advice, nor should they be construed as an endorsement or recommendation to buy, sell or hold. Please do not trade based solely on the information provided on this post. Furthermore, past performance does not guarantee future success. Always do your own due diligence and analysis when trading.
Chart courtesy of TradingView