In our November 16th report, we had forecast a rally in the Lite coin from the level of $60, following its listing in the South-Korean exchange Bithumb. Further, we had predicted the LTCUSD pair to breach the level of $72 in a week. The pair hit a high of $72.15 on Monday and is currently trading at $70.50 levels. We anticipate the uptrend to continue in the short-term due to the reasons given below.
Last week, the first-ever atomic swap (exchanging one cryptocurrency to another without the need for an exchange or any other centralized party) between Bitcoin and Litecoin was completed successfully. More importantly, it was completed off-chain, which means there is no trace of the transaction in the blockchain network.
Lightning Labs, through its off-chain network, conducted the transfer. The Lightning Network can theoretically perform billions of transactions instantly through the applications of smart contracts. The code was devised by Lightning Labs. It is a breakthrough development in the field of cryptocurrency.
Using the system, users will be able to exchange cryptocurrencies without having to wait for blockchain confirmations. The transaction fees would be lower and the exchange can be done at incredibly high speeds. Privacy is guaranteed as the transactions are absolutely anonymous.
The implementation of SegWit (segregated witness) facilitated such a transaction. Litecoin was the first currency to implement SegWit, ahead of Bitcoin. Thus, it is now used to test new technology. The code for Lightning Network was originally written for Bitcoin.
According to Charlie Lee, the developer of Lite coin, the day may not be far away when traders will transact through atomic swaps instead of centralized exchanges. The successful test has now increased the demand for Lite coin. Thus, we can expect the cryptocurrency to remain bullish in the short-term.
The historic price chart indicates the LTCUSD pair is trading near the major resistance level of 72. The money flow index is rising, while the pair is on the verge of breaking above the ascending triangle pattern.
In order to gain from the anticipated uptrend, we are looking at the possibility of acquiring a call option contract from a reputed binary broker. We would look for a contract, which remains valid for a period of one week. Further, the investment will be made when the LTCUSD pair trades near $72 in the cryptocurrency market.
Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
