A breakdown of the latest Litecoin worth motion, long-term Technical Evaluation, and the present macro backdrop for cryptocurrencies.
On Tuesday, Litecoin (LTC) is barely softer at $150.16 (-2.05$) in early buying and selling. LTC has misplaced -27% in December, over 50% from the November highs, and 65% beneath Might’s three-year excessive. Litecoin’s market cap has fallen from $25.9 billion to roughly $10.6 b within the final seven months, at the moment rating LTC because the 18th Most worthy cryptocurrency.
Like most legacy cryptocurrencies, Litecoin by no means recovered from the crypt collapse in Might. Whereas some, like Bitcoin and Ethereum, cast new highs in November, serving to the crypto market attain a $3 trillion valuation, LTC struggled to regain the shape it noticed in the beginning of 2021. Moreover, Litecoin has underperformed the broader market on the best way down.
A number of macro elements are weighing down cryptos for the time being, together with the FOMC’s determination to speed up the taper timeline. The hawkish stance has pushed the US greenback to an 18-month excessive and destabilised fairness markets. Because of this, traders have decreased publicity to threat property, together with cryptocurrencies. This morning, BTC is buying and selling at $47,00, round 32% beneath the November all-time excessive. Subsequently, the Litecoin worth has retraced to a big assist long-term degree, which LTC should preserve to maintain the 2021 bull market alive.
LTC Value Forecast
The weekly chart reveals the Litecoin worth is approaching confluent assist round $140. A rising development line from October 2020, aligned with the September lows, ought to present a substantial long-term flooring. So long as LTC stays above the development assist, it might flip greater onto the $200-$240 vary within the medium time period.
Nevertheless, if LTC closes beneath the development (on a weekly foundation), I anticipate lengthy liquidation to comply with. In that occasion, the worth ought to prolong towards the July low of $104.
For now, I’m cautiously optimistic. Nevertheless, merchants ought to pay shut consideration to general macro sentiment, as a broader risk-off in shares will exert unfavorable stress on Bitcoin, and subsequently, Litecoin.
Litecoin Value Chart (Weekly)
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