The Litecoin (LTC/USD) price retreated on Monday after Walmart (NYSE: WMT) denied reports of a partnership between the two entities. The coin is trading at $178, which is about 26% below the highest level on Monday.
Litecoin and Walmart partnership
Walmart is the biggest retailer in the world, with a market capitalization of more than $404 billion. The company has thousands of branches in the United States and a major presence online.
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Earlier on Monday, the Litecoin price jumped by as much as 30% even as other cryptocurrencies retreated. This spike happened after a press release via Globe Newswire referenced to a partnership between Litecoin Foundation and Walmart. The statement was confirmed by a tweet in sent from the official Litecoin Twitter account.
These events brought to light issues of market manipulation in the cryptocurrencies industry. This could put pressure on regulators and policymakers to tighten their regulations. In a statement, an analyst told Bloomberg that:
“Threats of market manipulation have been one of the primary focuses of regulators around these assets and to say this will get their attention is an extreme understatement.”
A partnership between Litecoin and Walmart would have been big news for cryptocurrencies because of the volume of business that the retailer does every year. For example, the firm had revenue of more than $552 billion in 2020.
The announcement was also notable because it came a few weeks after Walmart made headlines in the cryptocurrency industry. The company’s job board advertised a cryptocurrencies lead, who would oversee the platform’s investments and research in the industry.
The Litecoin price is also struggling as the broad market remains shaky. Cryptocurrencies have shed more than $300 billion worth of value in the past few weeks. Similarly, stocks have declined and analysts at key banks like Deutsche Bank, Bank of America, and Citi expect that this sell-off will continue in Autumn.
Litecoin price prediction
The daily chart shows that the LTC price popped to the highest level since May 19th after the Walmart hoax. The coin then dropped to $175, where it has been in the past few days. This price is also along the 25-day and 50-day moving averages (MA). It is also slightly below the key resistance level at $190 while the Relative Strength Index (RSI) has dropped to 50.
Therefore, the coin will likely remain in the current range as investors eye the price action of Bitcoin since the two have a close correlation.
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