Lite Coin Turns Bullish on Successful Atomic Swap Test

Lite Coin Turns Bullish on Successful Atomic Swap Test
November 23, 2017

 
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 reasons given below.

Last week, the first ever atomic swap (exchanging one crypto currency to another without the need for an exchange or any other centralised 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 block chain 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 crypto currency.

Using the system, users will be able to exchange crypto currencies without having to wait for block chain confirmations. The transaction fees would be lower and the exchange can be done at an incredibly high speeds. The 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 the 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 crypto currency 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.

LTCUSD - Technical Analysis - 23rd November 2017

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 crypto currency market.

Disclaimer: The trading analysis offered here is our opinion. It is not provided as trading advice, merely an indication of our trading plan. We cannot guarantee success and we encourage traders to incorporate a strong money management strategy to limit losses. Please use this article as part of your own research before formulating strategies prior to trading.

Ian Maguire

Ian Maguire

Ian is our resident contributor to the latest going ons in the cryptomarket, keeping up to date with the latest icos and coins


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