Litecoin worth 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 worth has been below stress as traders give attention to the hawkish tone by the Federal Reserve. In an announcement on the Jackson Hole Symposium at Wyoming, Jerome Powell insisted that the financial institution will proceed mountaineering rates of interest in the approaching months.
His sentiment was shared by different Federal Reserve officers like Charles Evans and Neel Kashkari. In an announcement on Wednesday this week, Cleveland Fed’s Loretta Mester mentioned that the financial institution will proceed mountaineering and in addition preserve excessive rates of interest till inflation strikes to 2%.
Historically, cryptocurrencies like Bitcoin and LTC tends to underperform in intervals of a hawkish Federal Reserve. This additionally explains why cryptocurrencies and shares have continued their bearish pattern in the previous few months. Indeed. American shares have fallen in the previous 5 straight days.
Litecoin worth has additionally underperformed due to the sluggish demand for the coin. With cryptocurrencies down by greater than 50% this yr, many customers of LTC have stayed away. This is evidenced by on-chain knowledge that present weak demand in the ecosystem.
Meanwhile, the coin has lagged due to the considerably sturdy US greenback. The US greenback index has jumped to the best stage in over 20 years. Litecoin and different cryptocurrencies have an inverse correlation with the US greenback.
Litecoin worth prediction
The day by day chart reveals that the LTC worth has been below stress in the previous few months. It has fallen by 86% from the best stage in 2021. A better look reveals that the coin has shaped a bearish flag sample, which is normally a bearish signal.
It has moved under the 25-day and 50-day transferring averages whereas the Relative Strength Index (RSI) has moved under the impartial level at 50. Therefore, there’s a chance that the coin can have a bearish breakout in September. If this occurs, the following key assist stage to watch can be at $40.
