Litecoin price has been under a lot of pressure lately and as I will describe below, the situation could soon worsen. Other altcoins like Bitcoin Cash, Ethereum, and Cardano have also wiped out some of their earlier gains.
LTC price withdrawals
Litecoin is a leading cryptocurrency mainly used for payment purposes. The community uses it to avoid Bitcoin’s substantial fees. Nevertheless, most of the Litecoins that exist today, such as Bitcoin, are held by investors. In fact, I haven’t seen a company that accepts the coin as a means of payment.
For the most part, Litecoin is known for its close correlation with Bitcoin. Its price tends to go up when Bitcoin goes up and to go down when its price goes down. In fact, the LTC price jumped to $ 190 this week as Bitcoin surged above $ 50,000 for the first time in more than 2 months.
At the same time, it has declined by about 10% as Bitcoin rose to just over $ 48,000. Hence, the coin is likely to respond to the upcoming Jackson Hole summit. Analysts expect politicians like Jerome Powell to talk about monetary policy, which will affect the price of Bitcoin and Litecoin.
Litecoin price prediction
A closer look at the four-hour chart shows that Litecoin formed a double-top pattern at around $ 190. When price moves, this pattern is usually a bearish sign. The chin or neckline of this pattern is $ 162. As if that wasn’t enough, the coin has managed to move below the ascending trend line shown in red. It has also fallen below the 25 and 50 period weighted moving averages (WMA). These patterns are in line with what I warned earlier in this article.
Therefore, while the overall outlook for LTC is bullish, we cannot rule out a situation where it will decline significantly over the next few days. The next key level to watch for will be the cutout at $ 160. This view will be void if the price rises above $ 188.