Litecoin As the hype surrounding the halving event died down, prices underperformed the market. LTC price fell to $80, its lowest level since June 21. It fell by more than 28% compared to this year’s high.
Litecoin’s price action reflects the overall performance of the cryptocurrency industry. Bitcoin, the largest peer, has been hovering around $29,000 for the past few weeks. Likewise, the total market capitalization of all cryptocurrencies remained at $1.12 trillion.
Litecoin price has ignored several important events in the ecosystem. I went last week through half-life, the process of reducing block rewards for miners within the ecosystem. Historically, Litecoin and other cryptocurrencies tend to show some volatility around halvings.
There was also a dovish response to last week’s downgrade of U.S. debt by Fitch, one of the three major credit rating agencies. In an ideal situation, a credit rating downgrade would have been a good thing since Bitcoin and other cryptocurrencies were designed to be anti-US dollar.
Meanwhile, on-chain metrics show a slight decline in the number of Litecoin transactions over the past few months. On the positive side, hashrate remains at an all-time high of 800TH/s.
Hashrate is an important indicator of a network’s computing power. In most cases, a higher hash rate means a healthier network.
Litecoin price prediction
The future price action of Litecoin price will depend on Bitcoin’s performance as it is closely correlated with Bitcoin. On the daily chart, LTC price has fallen below the important resistance level of the February high at $105.75.
Most importantly, Litecoin has formed what looks like a head and shoulders pattern, which is generally a bearish signal. The 50-day moving average and 200-day moving average also fell downward. The two averages are about to create a bearish crossover, known as a dead cross.
The coin also formed a bearish flag pattern. Therefore, the Litecoin price outlook is bearish, and the next level to watch is $71.20.
How to Buy Litecoin
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