June 28, 2022

Litecoin’s (LTC) Reaction to Delisting News from Korean Exchanges

Litecoin dominates headlines days following its Mimblewimble update launch and for related reasons. Several crypto exchanges in South Korea have reportedly declared moves to delist the alternative token. Upbit’s official press release reveals they will delist Litecoin from the exchange. Bimeiti, a local Korean news outlet, confirmed other four cryptocurrency exchanges interested in similar moves.

The delisting narratives respond to LTC’s mimblewimble update. The upgrade allows users to choose opt-in privacy. Meanwhile, that went against the anti-money laundering laws of South Korea. The regulations maintain an aggressive attitude against privacy tokens. That forces crypto exchanges to delist Litecoin, avoiding going against the rules of the law.

LTC Support Holds Despite FUD-Driven Pressure

Updates about delisting pressures a digital token and investors expected similar results for Litecoin. The altcoin maintained bearish price actions since Tuesday. Nevertheless, the asset battle to hold the $60 support, trading near $60.89 at this publication.

Litecoin’s downward strength had dragged the Relative Strength Index lower by the Money Flow Index noted a brief uptick. That indicates an impressive accumulation as the LTC price dropped lower. Also, it highlights how Litecoin managed to keep the support level.

On-chain stats show LTC’s market capitalization on a significant drop from June 6, though briefly higher than its monthly low. The whale supply recorded substantial outflows in the same timeframe. The supply metrics can offer an impressive view of on-chain activity. Supply distribution on addresses balance shows a conclusive narrative of reactions by different address categories. Wallets holding 10K – 100K LTC plunged to 18.10% from 18.46% between June 2 and June 9.

Addresses with 100K – 1 million Litecoin tokens saw an uptick to 34.42% from 34.26%. Meanwhile, the category with 1 million to 10 million currencies plunged to 13.84% from 13.96%, recording the highest fall between June 8 and June 9.

Final Thought

Litecoin should witness substantial selling momentum as the top holder class saw a sizable plunge. Nevertheless, the middle category boasts a massive share. And it recorded a brief uptick. That shows how Litecoin absorbs the selling momentum at the current support barrier. It’s unclear whether LTC will defend bearishness and rebound from its current value area. Broad market sentiment can confirm the token’s upcoming bias.