Breaking Down the Uptrend
In what seems to be a fresh wave of green in the cryptocurrency market, Litecoin’s (LTC) price is enjoying an upward rally. On Sep. 19, LTC price surged by 3.85% to hover close to the $68.50 mark. This outperformance of the broader crypto market defies the year-to-date downtrend that has plagued Litecoin, with a 3.85% depreciation against a 39% rise in the broader crypto market source.
Litecoin’s Market Behaviour and Federal Open Market Committee (FOMC) Connection
Most of the recent price movements can be traced back to the anticipation surrounding the Federal Open Market Committee (FOMC) meeting. It’s believed that the Federal Reserve officials could put a pause on the ongoing interest rate hikes. This speculation has increased investors’ risk appetite, as evidenced by the rise in U.S. stocks and most crypto asset.
This uptrend in Litecoin’s price has been accompanied by an underperformance of the U.S. dollar against other major global currencies, further hinting at the negative correlation between the LTC/USD pair and the U.S. dollar index .
What the Charts Say
In a closer look at the technicals, we can see that Litecoin’s recent market gains on Sep. 19 are part of a rebound trend initiated last week. Upon inspecting LTC/USD’s daily price chart, you’ll notice that near an apparent long-term ascending trendline support, a buying pattern begins to emerge. In fact, eight days into this trend saw an 18.5% bounce, resulting in short liquidations worth approximately $477,30.
Litecoin’s Future Projections
The Q3/2023 Litecoin price analysis suggests that a possible extension towards a multi-month descending trendline resistance could take place. Hence, it’s prospective that LTC could reach $78.50 as its next upside target, which would mean a hike of about 16.5% from the present price level.
According to some crypto enthusiasts, LTC could see exponential growth with estimates putting the coin’s minimum value at $3,301 by 2025, and some as high as $116,16.
Whale Effects on Litecoin
The distribution of Litecoin’s supply indicates that addresses holding between 100,000 and 1 million coins currently control a sizeable portion of the circulating supply. Moreover, whale activity in the Litecoin market may impact its ability to stay above the $100 price leve.
Litecoin’s Current Market Status
Litecoin’s recent positive trend continued over the past day, recording a 4.85% price rise to $67.31. The price surge further extended the 13.0% gain registered in the past week, which saw the price increase from $59.38 to its present value source.
What does this mean for future investors, and can this uptrend be sustained long enough for significant gains? As this exciting phase in Litecoin’s journey plays out, we invite our readers to share their insights and join the discussion below.
