2021-11-4 18:53 |
The Litecoin (LCT/USD) price was in a relatively tight range on Wednesday as investors waited for the Federal Reserve interest rate decision. The coin was trading at $200, where it has been in the past few days. This brings its market valuation to about $13 billion, making it the 17th biggest cryptocurrency in the world.
Federal Reserve decisionLitecoin is a second-generation cryptocurrency that was started to provide a better alternative to Bitcoin. It is a peer-to-peer cryptocurrency that people can send and shop with at a relatively lower cost.
Litecoin is known well because of its close relationship with Bitcoin. Historically, Litecoin has followed the price action of Bitcoin. It rises when Bitcoin rises and vice versa.
Recently, however, this correlation has diverged. While Bitcoin is trading close to its highest level on record, Litecoin is still lower from its all-time high by more than 112%. This price action is mostly because Bitcoin benefited substantially from the launch of the Exchange-Traded Fund (BITO).
The next big catalyst for the Litecoin price will be the upcoming Federal Reserve rate decision. In it, analysts expect that the central bank will turn a bit hawkish considering that the economy has staged a strong recovery. The unemployment rate has declined while inflation has continued to rise.
In theory, a hawkish Fed should be negative for the Litecoin price. However, in reality, this will likely not happen since the situation has already been priced-in by the market.
Meanwhile, on-chain data shows that activity in Litecoin’s ecosystem is doing well. According to BTC.com, the hash rate has been making modest gains in the past few weeks. It is currently at the highest level since October 6. The mining difficulty has also risen, which is a sign that activity is increasing.
Litecoin price predictionOn the daily chart, we see that the LTC price has been in a bullish trend in the past few weeks. That trend has pushed it to between the 23.6% and 38.2% Fibonacci retracement levels. The bullish trend is also being supported by the 25-day and 50-day moving averages. Most notably, the MACD has moved above the neutral level.
Therefore, there is a possibility that the Litecoin price will keep rising as bulls target the key support level at $235, which is about 17% above the current level. It was the highest level in September.
The post Litecoin price prediction: LTC is on track to a 17% jump appeared first on Invezz.
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