- MEI Pharma, a Nasdaq-listed pharmaceutical company, has bought 929,548 Litecoin tokens to launch a $100 million institutional treasury strategy.
- A symmetrical triangle pattern drives the midterm sideways trend in Litecoin price.
- A potential reversal in LTC could seek pullback support at $105 to recuperate bullish momentum.
Litecoin, the decentralized peer-to-peer cryptocurrency, witnessed heightened volatility on Tuesday, August 5th. During the Asian market hours, the coin price witnessed a temporary surge of 7.2% to reach the 5-month high of $129.16 before getting a complete reversal. The initial buying pressure likely followed MEI Pharma’s recent $100 million LTC purchase and launch of a treasury strategy centered on Litecoin.
However, the broader crypto market witnessed a bearish pullback during U.S. hours, and thus, the LTC price reverted immediately to currently settle at $120 with an intraday loss of 1.13%.
MEI Pharma Acquires $100M in Litecoin for Treasury Strategy
MEI Pharma, Inc. (MEIP), the California-based clinical-stage pharmaceutical company, has acquired 929,548 Litecoin tokens at an average price of $107.58, establishing a $100 million institutional treasury strategy. The move positions MEI as the first U.S.-listed public company to adopt Litecoin as its primary treasury reserve asset.
As the LTC price currently trades at $120, the LTC treasury is now valued at about $115 million, projecting an 11.57% gain since acquisition. According to Coinmarketcap data, Litecoin stands as the 19th largest cryptocurrency with a $9.13 billion market cap.
The initiative is being developed in collaboration with GSR, a prominent crypto investment firm, and Charlie Lee, Litecoin creator and MEI board member.
“Litecoin has long embodied sound, scalable, and decentralized money,” said Mr. Lee. “By initiating this strategy, MEI is taking a clear, institutional step forward that recognizes Litecoin’s role as both a reserve asset and an integral part of global financial systems.”
MEI’s decision to integrate LTC for its financial operations can be attributed to the network’s proven reliability, which shows an uninterrupted uptime of over thirteen years. Its low transaction fee and fast settlement make it an ideal asset for institutional treasury use. Moreover, Litecoin’s wide adoption across major platforms like BitPay, Robinhood, PayPal, and Venmo reinforces its liquidity and utility.
“We’re proud to support MEI’s innovative Litecoin treasury initiative,” said Joshua Riezman, U.S. Chief Strategy Officer, GSR. “This model sets a new institutional standard for integrating digital assets into the financial operations of public companies.”
The company plans to update its corporate identity shortly, potentially expanding into Litecoin mining and other initiatives. MEI continues its clinical research as well, indicating its equal focus on capital innovation.
Litecoin Price Poised for 13% Drop Within Triangle Pattern
The daily chart analysis of Litecoin shows an intense supply pressure at the $129 level, evidenced by the long-wick rejection candle. Interestingly, the price rejection has occurred at the multi-month resistance trendline of a symmetrical triangle pattern.
Since December 2024, the coin price has been resonating within the two converging trendlines of the triangle, driving a mid-term sideways trend.
The LTC price bounced twice from the pattern’s support trendline and thrice from the resistance trendline, indicating how strongly it influences the potential direction. Historically, a rejection from the upper boundary has triggered substantial corrections, often resulting in losses ranging between 41% and 51%.
If the selling pressure persists, the coin price could plunge over 13% to seek support at $105.7.
LTC/USDT – 1d Chart
However, the daily exponential moving averages of 50 and 100 could potentially back the $105.7 support and shift the LTC price trajectory sideways. The consolidation could recuperate its bullish momentum for a triangle breakout, signaling a major change in its market dynamics.