Litecoin Hits Three-Week High amid Broader Crypto Market Surge
Summary:
Litecoin (LTC) registered a new three-week high amid a broader cryptocurrency market upswing. While LTC outperformed the general crypto market on Sep. 19 with a rise of 3.85%, it has underperformed the wider crypto market in 2023. With the Federal Open Market Committee meeting concluding soon, investors' appetite for risky assets grows, further boosting LTC's value. Also, as a result of the negative correlation between Litecoin and the dollar's weekly performances, the fall in the U.S. dollar value has coincided with a rise in LTC's value. The increase in Litecoin's market value is a part of a larger rebound trend, with the anticipation of a further price rise in the coming weeks.
The value of Litecoin (LTC) is on the rise, registering a new three-week peak as part of a more extensive surge across the cryptocurrency market. On the 19th of September, LTC's value ascended by 3.85% to nearly $68.50, an improvement over the general crypto market's 2% gain on the day. Nevertheless, in 2023, Litecoin has not kept up with the overall crypto market's performance. Notably, Bitcoin followers are optimistic despite the US Federal Reserve's $100B loss. Litecoin's YTD (year-to-date) downfall is 3.85% compared to the overall crypto market's increase of 39% during the same timeframe.
The upcoming week is anticipated to be filled with Federal Open Market Committee (FOMC) updates since a meeting is concluding on the 20th of September. It is here that the Federal Reserve is expected to put a halt to the continuous interest rate increases. This expectation has heightened investors' interest in risk-prone assets, resulting in a rise for U.S. stocks and most cryptocurrencies ahead of the final decision. Concurrently, the U.S. dollar has been falling against leading foreign currencies, with the index declining by 0.5% throughout the week, inclusive of the sell-offs on the 19th of September.
Since December 2021, there has been a persisting negative correlation between Litecoin and the dollar's weekly performances, signaling a high likelihood of opposite trends. Hence, as the dollar’s performance dipped on the 19th of September, Litecoin’s value inclined.
The recent surge in Litecoin’s market value on the 19th of September part of a rebound trend initiated last week. Interestingly, this buying rush began near what seems to be a lasting upward trendline support. This support has successfully countered any attempts at Litecoin depreciation since December 2018. Since testing this trendline, Litecoin’s price has risen by 18.5% over eight days.
On the 19th of September, the rise in Litecoin's price led to the liquidation of short positions totaling around $477,300. This is relatively high when compared to the liquidation of long positions, valued only at $87,850. This liquidation of short positions entails derivative traders purchasing the respective asset, which combined with the buying trend in spot markets, increases asset prices.
Looking at Litecoin from a technical viewpoint, a price bounce from the long-standing upward trendline is anticipated to extend towards its several-month downturn trendline resistance. This could result in Litecoin's price reaching $78.50, a 16.5% rise from the current value. This level has previously acted as support in March and June 2023, and as resistance in January 2023. It also coincides with Litecoin's 50-week exponential moving average.
This piece does not provide investment advice or suggestions. Every investment or trading action carries risk. Readers are strongly advised to conduct personal research before making any decisions.
Published At
9/19/2023 2:46:28 PM
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