Someone made a lot of money spreading fake news of a partnership between Litecoin and Walmart. But what could be the cost if they are busted?
The fake news earlier this week that took Litecoin to the stars and back to the ground in a matter of hours could turn out to be more serious than it seems because —unlike what happens in the crypto-verse— the stock market is regulated to the millimeter.
According to information from Reuters, Walmart Inc launched an investigation regarding a piece of fake news that spread through news release distributor Globe Newswire claiming that the company had secured a partnership with the Litecoin Foundation to accept the cryptocurrency.
In addition, to Walmart Inc’s actions, Globe NewsWire said in an email that it would work with the appropriate authorities to investigate the case.
“We will work with the appropriate authorities to request – and facilitate – a full investigation, including into any criminal activity associated with this matter.”
Prison and Millionaire Fines
It’s very common in the world of Crypto Twitter to see prices move to the beat of rumors without further investigation. Such is the nature of the markets, and traders take advantage of this lack of regulation to orchestrate manipulation schemes that go from fake ads to massive coordinated Pump and Dump operations.
But when someone pulls a stunt like this to potentially impact the stock market, things change dramatically. And this is important because Walmart Inc is a publicly-traded company, and a potential partnership could influence the company’s fundamentals or risk.
On the surface, the “troll’s” actions were aimed at spiking LTC’s price, but it is possible to prove that, by extension, they may also have affected Walmart’s stock prices.
Under the Securities Act of 1933 and the Securities Exchange Act of 1934, a person is involved in securities fraud if willfully engages in deceptive practices intended to manipulate financial markets or induce investors to make financial investment decisions based on deceptive or false information. FindLaw defines securities fraud as follows:
Generally, securities fraud occurs when someone makes a false statement about a company or the value of its stock, and others make financial decisions based on the false information.
Third Party Misrepresentation is one kind of securities fraud, and it occurs when a third party gives out false information about the stock market or a particular company or industry. Convictions for federal securities fraud crimes can result in a 5-year federal prison sentence per offense and fines of up to $5 million.
The Litecoin-Walmart Fake Partnership
According to the official versions, a person posed as a Walmart staff member and passed the note to Globe Newswire for reproduction. After the news spread, Globe Newswire quickly published a statement to disregard the news release.
The news had little effect on Walmart’s stocks. However, Litecoin (LTC) abruptly spiked, only to crash with the same intensity. Someone made a lot of money with that move, causing significant damage to investors. Walmart’s stocks also went down a little bit. In the chart below, Litecoin (LTC) is represented with hollow candlesticks and Walmart (WMT) with traditional candlesticks.
Litecoin price analysis: LTC to retest $196 resistance as bulls gain control
- Litecoin price analysis shows a bullish pattern.
- Strong support is present at $191.
- Strong resistance is found at $196.
The Litecoin price analysis reveals bulls are trying to take the price higher. LTC was slowly recovering from yesterday’s loss when the price stooped down from $196.3 to $190.2. As the litecoin is in bullish mode from 29th September, LTC/USD is still in the green zone.
If we look at the price function of the past 24 hours, then LTC has gained a value of 2.95 percent during this time and is on a gain of 6.99 percent if we consider the entire last week. Today LTC/USD pair is trading between the $190-$195.7 range. During the last week, the LTC/USD price movement was mostly bullish, as the price curve is upwards for the mentioned period of time, but the coin is still floating below the psychological mark of $200.
LTC/USD 1-day price chart: will Litcoin break above $200?
The 1-day Litecoin price analysis shows bulls have taken the lead once again and are trying to take the price higher. Overall, LTC/USD has gained a value of around four percent over the last 24 hours, and the price has improved by 6.9 percent over the course of the last seven days.
The volatility is comparatively high for the LTC/USD pair as the Bollinger bands are still expanded, the upper Bollinger band is at the level of $202, and the lower band is at $168. The average of Bollinger bands is forming at $185 below the price level. The moving average (MA) is at $192 below the price level, giving some edge to the bulls.
The relative strength index (RSI) is in the upper half of the neutral zone and still moving up at a score of 57.
Litecoin price analysis: market pressure hindering bullish momentum
The 4-hours Litecoin price analysis indicates difficult times for the bulls as they are taking the price higher, but selling pressure is forming for LTC assets. Bears are hindering the bullish momentum, and recovery is not that easy for the bulls.
The moving average has traveled to $192.9, just below the price level, indicating a bullish crossover due to the recent bullish activity. The volatility is decreasing, which might limit the price fluctuation in the coming hours.
The Bollinger bands are converging, with the upper band present at the $199 mark and the lower band present at the $188 mark. The average of Bollinger bands is at $193.9 above the price level, indicating bearish potential. The relative strength index (RSI) has flattened up exactly above the centerline of the neutral zone; if RSI dipped again, the bears would again get the lead, and if it moved up, a further recovery could be expected.
The technical indicators for Litecoin price analysis are on the bullish side due to the bullish trend for the past month. Out of a total of 26 technical indicators, one is showing a sell signal, and 15 are showing a buy signal, and 10 technical indicators are in a neutral position.
The moving averages are also bullish, with 14 indications towards a buy signal and none for a sell signal, and one moving average is neutral. The oscillators are mostly neutral, with a score of nine oscillators standing neutral and one oscillator of MACD showing buy signal and the other oscillator of momentum showing a sell signal.
Litecoin price analysis: Conclusion
The 1-day and 4-hours Litecoin price analysis concludes that bulls are making efforts to take the price above the psychological mark of $200, but overall circumstances are not that favorable for them.
Though there are difficulties, the one most important factor is the movement of the RSI indicator, which will describe the future along with the movement of the MA curve below the price level, which indicates chances for a breakout are there.
Litecoin Forecast and Analysis October 25 — 29, 2021
Litecoin LTC/USD ends the trading week at 198.73 and continues to move within the growth and bullish channel, but now there is a rebound after updating the local maximum. Moving averages indicate a bullish trend. Prices broke through the area between the signal lines upwards. This indicates pressure from buyers of the digital asset and a potential continuation of the decline in the Litecoin rate in the current trading week. At the moment, we should expect an attempt to develop a price decline and a test of the support area near the level of 145.05. Where can we expect a rebound again and an attempt to raise the value of Litecoin with a potential target above the level of 305.05.
Litecoin Forecast and Analysis October 25 — 29, 2021
An additional signal in favor of raising the LTC/USD quotes in the current trading week October 25 — 29, 2021 will be a test of the support line on the relative strength index (RSI). Now the values of the RSI indicator have risen to the level of 70, therefore, there may be a fall before the continuation of the growth of the coin quotes. The second signal will be a rebound from the lower border of the bullish channel. Cancellation of the growth option for the Litecoin digital asset will be a fall in price and a breakdown of the 95.05 area. This will indicate a breakdown of support and a continued fall in the LTC/USD rate below the level of 45.05. Confirmation of the rise in the cryptocurrency will be the breakdown of the resistance area and the closing of quotations above the level of 255.05.
Litecoin Forecast and Analysis October 25 — 29, 2021 implies an attempt to test the support area near the level of 145.05. Then, continued growth to the area above the level of 305.05. An additional signal in favor of Litecoin’s rise will be a test of the trend line on the relative strength index (RSI). Cancellation of the growth option will be a fall and a breakdown of the 95.05 area. This will indicate a continued decline in cryptocurrency with a target below 45.05.
Litecoin Forecast and LTC/USD Analysis October 22, 2021
LTC/USD are traded at the level of 204.04 and continue to move as part of the rise and the bullish channel. The capitalization of the Litecoin cryptocurrency at the time of the publication of the forecast is $13,333,492,930. Moving averages indicate a short-term bullish trend for Litecoin. Prices are again testing the area between the signal lines, which indicates pressure from buyers of the asset and a potential continuation of growth from the current levels. At the moment, we should expect an attempt to develop a decrease in the value of a digital asset and a test of the support level near the area of 190.55. Where can we expect a rebound again and a continuation of the rise in the Litecoin rate with a potential target above the level of 245.55.
Litecoin Forecast and LTC/USD Analysis October 22, 2021
An additional signal in favor of the growth of LTC/USD quotes will be a test of the bullish trend line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the ascending channel. Cancellation of the option to raise the coin will be a fall in the value of the asset and a breakdown of the area of 170.55. This will indicate a breakdown of the support area and a continued fall in the cryptocurrency rate with a potential target below 135.55. With the breakdown of the resistance area and closing of quotations above the level of 220.05, we should expect confirmation of the development of a bullish trend in Litecoin, which will indicate a breakdown of the upper border of the downward channel.
Litecoin Forecast and LTC/USD Analysis October 22, 2021 suggests an attempt to correct and test the support area near the level of 190.55. Where can we expect a rebound and a continued rise in the LTC/USD price to the area above the level of 245.55. An additional signal in favor of Litecoin’s growth will be a test of the trend line on the relative strength index (RSI). Cancellation of the upside option will be a fall and a breakdown of the 170.55 area. This will indicate a continued fall in the cryptocurrency with a target below 135.55.