A breakdown of the latest Litecoin value 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 Could’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 present rating LTC because the 18th most precious cryptocurrency.
Like most legacy cryptocurrencies, Litecoin by no means recovered from the crypt collapse in Could. Whereas some, like Bitcoin and Ethereum, solid new highs in November, serving to the crypto market attain a $3 trillion valuation, LTC struggled to regain the shape it noticed firstly of 2021. Moreover, Litecoin has underperformed the broader market on the way in which down.
A number of macro elements are weighing down cryptos for the time being, together with the FOMC’s resolution 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 diminished publicity to danger 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 value has retraced to a major assist long-term degree, which LTC should keep to maintain the 2021 bull market alive.
LTC Worth Forecast
The weekly chart reveals the Litecoin value 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 may flip larger onto the $200-$240 vary within the medium time period.
Nevertheless, if LTC closes beneath the development (on a weekly foundation), I count on 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 total macro sentiment, as a broader risk-off in shares will exert unfavourable stress on Bitcoin, and subsequently, Litecoin.
Litecoin Worth Chart (Weekly)
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