With its market capitalization of $3,089,054,113 and a circulating supply of 70,502,656.28 LTC tokens, Litecoin is moving toward a bigger economy. Recent news about the delisting of Litecoin from some prominent South Korean crypto exchanges has delivered a huge blow to the ecosystem of Litecoin. The reason for this delisting is associated with the update of the MimbleWimble transaction that added anonymity to LTC transactions.
LTC is still not a fully private cryptocurrency, but more like Dash, which offered opted privacy features. Specific financial information acts of South Korea make such transactions illegal. Hence many of the exchanges had to delist LTC. The collapse of Terra (LUNA) has a greater impact on the strictness of cryptocurrency regulations.
LTC may continue to move down, but investors would have anticipated this price trend and action of South Korea as mWeb protocol was under work for quite a long time. Litecoin being a common token used for transitions and payments in South Korea, this delisting has surely played a hand in the price decline.
The Litecoin price trend is volatile with a mix of negative sentiment that has pushed LTC below historical levels. Breaking its seven-day streak of negative movement, LTC has finally entered into a downtrend that can push it further below its historic support levels.
Litecoin’s recent consolidation between $60 and $75 was a positive element of recent day price action. But the delisting on May 09, 2022, seems to have triggered a decline in the market value of LTC tokens causing a cascading effect.
Price declines have finally shown some restraint as they reached the historical support level of $38. The transaction volumes in the last couple of days have been higher than the May 11, 2022 price crash. The volume dump of this token has pushed the value down, and it can continue to move downwards.
RSI indicator shows a dump from 40 to 25 within a week of price movements. These price differences have greatly affected the sentiment of holders and would require high volumes of buying to bring LTC back to pre $75 value.
This move could take a couple of months, but the price movement will be instrumental in identifying these movements in the coming months. Risk takers may take advantage of price dumps and wait for a breakout.