Litecoin drops for the 4th straight session, hits 3-week low

Litecoin fluctuated in a narrowly bearish range on Wednesday to resume its 13-session rally in 19 sessions from its highest since April 3rd, when it was around the $100 mark for the first time since July 19th, reflecting corrective actions on its gains in the first week of the current month and quarter, of the 50% increase in its market capitalization.

At 06:50 GMT, Litecoin fell 0.56% to $73.960 compared to the opening levels of $74.372, after reaching a low of $70,600 and a high of $75.340. The total market value for the sixth largest cryptocurrency is currently about $4.54 billion, up more than 20% from what it was earlier this month.

Litecoin continued its losing streak in the last two weeks as it retreated to its lowest since April 2nd, when it gained around 27% and reached its best daily performance since Feb. 8, following the announcement of the Litecoin Foundation approach to Beam, the software Development Company, to explore and lunch a new protocol called "Mimblewimble" via Extension Blocks on Litecoin, which would improve privacy and the expansion of Litecoin.

It worth mentioning that the Litecoin which continues its losses for the third week in a row comes as it is heading for its longest weekly losing streak since last November, after IMF Executive Director Christine Lagarde stated that the new financial innovations such as cryptocurrencies lead to financial instability.

Lagarde pointed out that the Blockchain technology in assets such as cryptocurrencies are shaking up the banking system and should be closely monitored, to maintain financial stability, Explaining that any changes in the financial system must be accompanied by new regulations, adding that the world does not want innovation that threatens the financial system, which could lead to the absence of stability required. Therefore, she called for more appropriate regulation,  of technology companies entering the financial sector.

while those remarks contradict with the essence of cryptocurrencies, as they're characterized by their anonymity and decentralization. Lagarde's remarks came after China's National Development and Reform Commission (NDRC) announced its intentions to ban more than two-thirds of the global Bitcoin's mining operations, which take place in the country, while claiming the ban comes to make the world safer.

Which has contributed to the expansion of Litecoin corrective operations in the recent past after its extensive gains in the first weeks of the month and quarter by more than 50%, in addition to the expanded gains achieved by most of the major cryptocurrencies since the beginning of 2019, which shows that crypto assets are entering a phase of corrective operations following their expanded losses during 2018.