2023-7-14 09:45 |
Litecoin price rose slightly on Friday as the mood in the crypto market improved and as the US dollar index (DXY) tumbled below $100 for the first time since 2022. LTC was trading at $100, which was a few points above this week’s low of $91.75.
US dollar index slumpsLitecoin and other cryptocurrencies have had two important catalysts this week. First, the US published weak consumer inflation data. As we wrote in this article, the headline consumer inflation dropped to 3.0% in June, the lowest level since March 2021.
I believe that inflation will continue falling in the next few months and hit the Fed target of 2.0% later this year. The implication of this trend is that the Fed has a little room for more hikes. I expect it to hike by 0.25% this month followed by a prolonged pause.
DXY index chart by TradingView
The financial market also believes this, with the fear and greed index moving to the extreme greed zone of 80. At the same time, the US dollar index has dropped below the important support level of $100.
The dollar has crashed as investors anticipate an increased divergence between the Fed and other European central banks. A weaker dollar and a less hawkish Federal Reserve are usually good for cryptocurrencies like Litecoin and Bitcoin Cash.
The other important Litecoin news was Ripple Labs victory against the Securities and Exchange Commission (SEC). In her ruling, the judge said that XRP was not a security even as she ruled that Ripple Labs executives violated the law.
The implication of this outcome is that more institutional investors could move to embrace cryptocurrencies. If this happens, Litecoin could be a major beneficiary.
Looking ahead. Litecoin is bracing for the upcoming halving event that will reduce the block rewards. Most cryptocurrencies tend to rally ahead of a halving event.
Litecoin price predictionLTC chart by TradingView
Turning to the daily chart, we see that the LTC crypto price has risen slightly in the past few days. In this period, the coin has retested the important resistance level at $103.34, the highest level on April 18 and February 13th.
Litecoin remains above the 50-day and 25-day exponential moving averages. It also seems to be in a process of retesting this month’s high of $115.85. The Relative Strength Index (RSI) has moved slightly above the neutral point at 50. Therefore, the outlook for the LTC coin is bullish, with the next level to watch being at $115.8.
The post Litecoin price prediction as the US dollar index (DXY) slips below $100 appeared first on Invezz.
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