Litecoin price trades sideways as decision time looms

Litecoin price trades sideways as decision time looms

  • Litecoin price has been trading mostly in the sideways fashion in the past few weeks
  • The Foundation reached an agreement with the game-maker Atari
  • The price action created a symmetrical triangle chart pattern that is likely to yield a breakout in the coming

Litecoin has been trading mostly sideways in the past month after the coronavirus-related selloff forced the price action to hit the 15-month low at $25.00. In the meantime, the Litecoin Foundation with the game-maker Atari.

Fundamental analysis: Low transaction rates pay off for Litecoin

The Litecoin Foundation has entered into a partnership with the US video game-maker Atari to offer an approved payment method for investors who plan to buy Atari Token. According to the announcement, Atari plans to roll out the token in September. 

Consumers will be able to use the Atari Token to manage Atari purchases. The company has also formed a new division, Atari Chain Ltd, which will work on crypto-related projects in the entertainment industry. 

Litecoin will also be a means of payment for the Atari’s long-awaited VCS game console. People who buy the console using LTC will get a discount. 

The VCS is a PC/console hybrid that will provide the consumers with hundreds of new and classic video games and an ability to stream 4K video, said the company. Also, users will be able to use the VCS to develop their own games and apps and share it with other users. 

Atari’s Chief Executive, Fred Chesnais, said that Litecoin’s user-friendliness and low transaction rates will be a great contribution to the Atari ecosystem. 

“We are pleased to have Litecoin as a means of payment for the Atari Token Sales. Litecoin’s ease-of-use and low transaction costs make it a perfect fit for use alongside the Atari Token and other projects,” Chesnais said.

The managing director of the Litecoin Foundation, Charlie Lee, said the organization was excited about the opportunities this partnership will offer.

“The Litecoin Foundation is excited to see the possibilities a partnership like this can have for not only Litecoin and cryptocurrencies but also the gaming industry and lifelong fans of Atari,” said Lee.

Technical analysis: The decision time looms

After printing a new 15-month low at $25.00 in March, Litecoin has been trading mostly sideways with a slight bias to the upside. The series of the higher highs was broken in the first week of May when the buyers failed to extend the uptrend.

Litecoin daily chart (TradingView)

As a result, the price action has created a symmetrical triangle. The two trend lines have now almost converged, which means that we are likely to get a voluminous move in one of the two sides very soon. 

The coin will face strong resistance in the area $49 – $51 if the price action breaks higher. On the downside, the support zone between $38 and $39 is likely to provide immediate support.

Summary

Litecoin price is approaching the end of a triangle with the next week likely to be crucial for the short-term price movements. In the meantime, the Litecoin Foundation entered into a partnership with the US video game-maker Atari to offer an approved payment method for investors who plan to buy Atari Token.

By Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to Invezz. His passion has given him first hand experience of trading, while his writing means he understands the market forces and wider regulation.

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