Litecoin price formed a deadcross pattern on August 17th.
Other coins, such as LTC, are suffering from weak fundamentals.
The focus now shifts to the upcoming US inflation data.
Litecoin Prices plunged to their lowest level since November 2022 as investors await the upcoming US Consumer Price Index (CPI) data. LTC coin fell to a low of $60. That means it’s down more than 36% since launch. bisector In August, it was down nearly 50% from this year’s high.
US inflation data outlook
Litecoin and other cryptocurrencies have seen strong declines over the past few months as demand has declined. The total volume of cryptocurrencies traded on centralized exchanges (CEXs) fell in August to the lowest level since 2020, according to the latest data from The Block.
There are two main reasons why the Litecoin price fell. First, there are serious regulatory concerns in the industry after the Securities and Exchange Commission (SEC) sued Coinbase and Binance.
This lawsuit has two main advantages. First, I believe it will take a long time to complete. The Ripple v. SC case took more than three years. Second, cryptocurrency companies have shown that they can win large-scale lawsuits against the SEC.
Another major reason for the sell-off is the Federal Reserve’s push to raise interest rates to the highest levels in decades. This increase led to a surge in yields on US assets. The yield on 10-year Treasury bonds soared to 4.50%, higher than the official inflation rate.
Likewise, the money market is currently yielding over 5.2%. Therefore, investors are moving their assets into these assets and avoiding relatively risky cryptocurrencies such as Bitcoin and Litecoin.
Therefore, the upcoming US inflation data will impact the prices of Litecoin and other cryptocurrencies. Figures due on Wednesday are set to show headline inflation jumped to 3.4% in August. The higher the number, the greater the LTC weakness.
Litecoin price prediction
Looking at the daily charts, we see that LTC price has been in a strong downward trend over the past few months. It has now fallen below key support at $60.70, the lowest level reached on August 18. Most importantly, it formed a dead cross on August 17th. This pattern is formed when the 50-day moving average and the 200-day moving average intersect.
Litecoin price also retreated below key support levels, reaching June and March lows of $71.12 and $64.87. Therefore, the outlook for the coin is bearish, and the next level to watch is $50.
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