Litecoin value was in a good vary on Thursday as traders began to reposition their property for September. The LTC coin rose barely to a excessive of $55.80, which was barely above this week’s low of $52.36. Its market cap stands at over $3.2 billion.
Hawkish Federal Reserve
Litecoin value has been beneath stress as traders deal with the hawkish tone by the Federal Reserve. In a press release on the Jackson Gap Symposium at Wyoming, Jerome Powell insisted that the financial institution will proceed climbing rates of interest within the coming months.
His sentiment was shared by different Federal Reserve officers like Charles Evans and Neel Kashkari. In a press release on Wednesday this week, Cleveland Fed’s Loretta Mester mentioned that the financial institution will proceed climbing and in addition keep excessive rates of interest till inflation strikes to 2%.
Traditionally, cryptocurrencies like Bitcoin and LTC tends to underperform in durations of a hawkish Federal Reserve. This additionally explains why cryptocurrencies and shares have continued their bearish pattern previously few months. Certainly. American shares have fallen previously 5 straight days.
Litecoin value has additionally underperformed due to the sluggish demand for the coin. With cryptocurrencies down by greater than 50% this 12 months, many customers of LTC have stayed away. That is evidenced by on-chain information that present weak demand within the ecosystem.
In the meantime, the coin has lagged due to the considerably sturdy US greenback. The US greenback index has jumped to the very best degree in over 20 years. Litecoin and different cryptocurrencies have an inverse correlation with the US greenback.
Litecoin value prediction
The day by day chart reveals that the LTC value has been beneath stress previously few months. It has fallen by 86% from the very best degree in 2021. A more in-depth look reveals that the coin has shaped a bearish flag sample, which is normally a bearish signal.
It has moved beneath the 25-day and 50-day shifting averages whereas the Relative Energy Index (RSI) has moved beneath the impartial level at 50. Due to this fact, there’s a probability that the coin could have a bearish breakout in September. If this occurs, the following key assist degree to look at will likely be at $40.