Tornado

Wednesday saw a 2% drop in Litecoin price to $117 as crypto traders responded to the US court's decision to overturn the Federal prohibition on Tornado Cash, a platform that mixes cryptocurrencies.

Litecoin open interest increased to $577 million as traders continued to buy new positions despite the price decrease.

Aside from speculative traders taking advantage of the market drop to start new positions at cheaper levels, technical indicators also show important signs of a comeback.

After a US court reversed the federal sanctions level against the Tornado Cash cryptocurrency mixing technology, the price of Litecoin dropped around $117. Can we expect cryptocurrencies like LTC to reach new heights soon as regulations around privacy-preserving technology become clear?

As investors respond to the reversal of Tornado Cash restrictions, the price of Litecoin remains supported above $115.
As cryptocurrency investors focused on the more interesting stories making news this week, the price of Litecoin shook on Wednesday.

On Monday, newsreels were dominated by the TRUMP and MELANIA token frenzy in anticipation of the inauguration. On Wednesday, extra volatility was injected by a US court verdict.

The restrictions that were put on the cryptocurrency mixer protocol Tornado Cash because to allegations that North Korean hackers used it to launch stolen assets during the previous administration have been lifted by a recent US court order.

Many people who are interested in blockchain technology and want to see privacy-preserving cryptocurrency payment methods adopted are optimistic after this decision.

Coins that prioritize anonymity, like Litecoin (LTC), Bitcoin (BTC), and Dash (DASH), have a bright future thanks to Tornado Cash's exoneration.

Within twelve hours after the decision, Tornado Cash (TORN) and Monero (XMR) saw rises of ten percent or more. XMR hit $218.83 and TORN soared to $18.61.

Although Monero and Tornado Cash had double-digit price rallies, Litecoin's short-term price momentum took a hit.

At the time of writing, the price of LTC had dropped 2% on Wednesday, reaching $117, as seen in the figure above. Traders may be shifting their money from stable assets like Litecoin to tokens that will get a direct advantage from the Tornado Cash verdict, according to this short-term divergence.

Even though they were both investigated extensively when Biden was president, TORN and XMR seem to be gaining some short-term speculation interest.

In the excitement over Trump's presidency, crypto traders are putting short-term profits ahead of long-term fundamentals, as seen by Litecoin's modest reaction.

Early Litecoin comeback bets total $580 million
Litecoin (LTC) fell 2% to $117 on Wednesday as investors responded to a historic US court decision that lifted the federal prohibition on Tornado Cash, a mechanism for mixing cryptocurrencies.

The move, which was revealed late Tuesday, has caused major currencies to exhibit different trajectories and injected volatility into the larger cryptocurrency market.

According to Coinglass' open interest chart, speculative traders kept adding fresh Litecoin holdings even when its price dropped.

The open interest for Litecoin futures contracts increased by $12 million, or 2%, in the last 24 hours, as seen above. It went from $565 million to $577 million.

To combat the negative sentiment in the spot markets, speculative traders are putting money into new positions, according to this inflow of capital.

The 2% price drop and 2% increase in open interest at the same time support a convincing narrative: traders seem optimistic in Litecoin's prospects for a return.

Market investors often want to buy in at cheaper prices amid price falls, which typically suggests bullish accumulation.

This perspective is strengthened by considering the larger market situation. As a result of the court's decision, privacy-focused coins like Tornado Cash and Monero have seen double-digit price increases, drawing the attention of traders.

Litecoin, on the other hand, has maintained its status as a beloved asset among both retail and institutional traders, thanks to its tenure as a "silver to Bitcoin's gold."

The increased open interest in Litecoin suggests that optimistic traders are determined to counteract negative sell-offs, even if Tornado Cash and Monero have garnered more attention.

While keeping an eye on Litecoin's comeback potential, traders may be strategically moving cash in the LTC futures market into privacy-focused assets.

Forecast for LTC Price: A close over $117 might confirm that $150 is a realistic target for a resurgence.

The current price prognosis for Litecoin, which fell 2.19 percent throughout the day on Wednesday, is neutral. The cryptocurrency is trading at the $116.50 level, with $115 serving as immediate support.

A considerable compression of the Bollinger Bands indicates that a large price movement in either direction is possible. If the current downward trend continues, the lower band at $112.3 will act as a crucial support zone, while the upper band at $131.8 will serve as an early upward objective.

Nevertheless, the little drop in price suggests that purchasing power is waning, which might lead to further declines if the $115 support level is broken.

The important psychological floor of $112 may be reached if this happens.

The midline VWAP, which is $117.15, indicates a potential equilibrium zone, on the other hand.

If the market closes above this level, positive sentiment might be revived and LTC could be propelled over $122 barrier and beyond.

Consistent increases in open interest provide evidence of speculative accumulation, which is the dominant structure.

Under a positive scenario, if buying pressure remains strong, the price might break out over $122, with the $150 resistance zone as a potential objective.

However, the near-term prognosis might turn negative if $117 is not reclaimed firmly.

#Litecoin #Tornado $LTC