Here’s Why MoneyGram Adoption Can Boost Litecoin Price 10x
A decision by the peer-to-peer payments company MoneyGram to allow users in the US to buy, sell and hold litecoin (LTC) and other cryptocurrencies could push the litecoin price up by more than 10x, some believe.
The news that MoneyGram will offer litecoin to its users broke on Wednesday this week, when the payments company called cryptocurrencies “additive to everything we’re doing at MoneyGram,” and said users in nearly all US states will now be able to trade them.
In addition to litecoin, MoneyGram users will also get access to trade and hold bitcoin (BTC) and ethereum (ETH). But since litecoin has a much smaller market capitalization than the two other cryptocurrencies, the news led to a much bigger market reaction for LTC.
In response to the news, the price of LTC pumped in the market as trading volume surged for the coin. Within 1 hour of the news breaking, LTC was up more than 10% to just over $61. As of press time on Thursday, LTC was still trading at close to $61, and was up 2.9% for the past 24 hours.
The news was also shared by the coin’s creator, Charlie Lee, on Twitter on Wednesday. “As I mentioned during the Litecoin Summit 2022 keynote, adoption is the most important thing for Litecoin. So I’m extremely excited to be able to use MoneyGram to buy Litecoin now,” Lee, who goes by the Twitter handle @SatoshiLite, wrote.
As I mentioned during the Litecoin Summit 2022 keynote, adoption is the most important thing for Litecoin. So I'm extremely excited to be able to use @MoneyGram to buy Litecoin now! Thanks @Coinme for making this happen.— Charlie Lee Ⓜ️🕸️ (@SatoshiLite) November 2, 2022
P.S. Yes, Litecoin is still alive to answer the haters 👇 pic.twitter.com/PI31vbhAqW
Following the jump in price on Wednesday, price action in the LTC market has remained bullish, with a number of popular social media influencers taking notice:https://www.twitter.com/_Crypt0Jack/status/1587779554621685761
Looking at the litecoin chart from a technical analysis perspective now, it’s clear that a more bullish phase has begun after price broke through previous resistance in the $57 to $58 area. Still, it is worth pointing out that Thursday’s price action has been somewhat bearish, with price rejecting just below the $65 level and trading sharply lower from there.
If the bulls are right and LTC reverses higher again, however, the next resistance area to keep an eye on would be the $65 level. This has served as important resistance since June, and a confirmed break above this area would be hugely bullish for LTC, potentially pushing the price up as much as 10x in the next crypto bull run.
MoneyGram as “bridge” to crypto
In the past, MoneyGram has hinted that it will support transfers made with stablecoins at some point in the future. The stablecoin plans were announced by the company’s CEO Alex Holmes in May of this year, and came as a result of a partnership with the Stellar (XLM) blockchain.
“The world of crypto and the world of fiat are not really compatible today. We’re trying to be a bridge from the crypto world to the fiat world,” Holmes was quoted as saying at the time.