LTC, the ticker for Litecoin, the cryptocurrency that powers the crypto-payments-focused Litecoin blockchain, was last trading around 3.5% lower on Thursday in the $94 area, having pulled back to the south of its 21-Day Moving Average at $95.50 and from earlier weekly highs in the $98.50 area. The cryptocurrency’s latest pullback comes in tandem with a broader easing of crypto prices after fresh US data (weekly jobless claims) pointed at a still-hot labor market and economy, pressuring risk assets and supporting Fed tightening bets.
Technical selling is likely also playing a role. Since falling below an uptrend that had been in play since last November at the end of last week, Litecoin has been grinding higher, but has consistently been unable to break to the north of the uptrend that had previously been offering support. Litecoin failed to break back above it again on Wednesday, contributing to Thursday’s reversal, though the 50DMA at $93 may offer support.
Litecoin’s latest reversal comes despite fresh evidence of the cryptocurrency’s adoption as a mainstream means of payment. According to a recent report published by CoinGate.com, LTC payments account for 9.5% of total crypto payments made to CoinGate merchants. That’s impressive, given Litecoin only accounts for around 0.6% of the cryptocurrency market’s total capitalization. Its market cap is currently around $6.8 billion versus a total crypto market cap of around $1.06 trillion.
Price Prediction - Where Next for Litecoin?
With LTC having dipped below its uptrend from November 2022, it may be more of a struggle to get back above $100 in the short term. Tests of recent lows in the $88-$90 are probably more likely. But if the broader cryptocurrency market continues to maintain its composure and gradually rise in the coming months, Litecoin is a good candidate to continue performing well.
That's because the cryptocurrency has a few positive drivers at the moment. Litecoin’s use as a medium of exchange is likely to continue to grow in wake of the cryptocurrency’s recently secured partnership with Mastercard, who will soon begin offering Litecoin-based cards to customers in the UK and EU after success with a similar program in the US. However, it was recently reported that Mastercard will be pushing back the launch of crypto-related products due to market and regulatory uncertainty. Meanwhile, just as the Bitcoin blockchain has experienced a surge of intrigue in wake of the success of the recently deployed Ordinal non-fungible token (NFT) protocol, Litecoin is too.
According to a recent tweet by the Litecoin Foundation, 20,000 Litecoin Ordinals were inscripted directly onto Litecoin’s blockchain within the space of just three days. Litecoin might also be set to be one of the main beneficiaries of the expected surge in crypto markets when authorities in Hong Kong open the market back up to retail traders again later this month. According to a tweet by the official Litecoin account, retail cryptocurrencies “must be classified on at least two of five indices for Hong Kong's SFC approval”. “Only 4 cryptos have four or more, one of which is Litecoin”.
In the long term then, Litecoin might well be able to sustain its march higher that began last November when LTC briefly dipped under $50. The major levels the bulls will be targeting include the February highs around $106, the highs from last March in the $130s and a key long-term support-turned-resistance zone in the low $140s.
LTC Alternatives to Consider
LTC’s outlook is potentially looking quite good. However, traders looking for quick gains might want to consider other high-potential tokens, such as those being sold in pre-sale by promising up-and-coming crypto projects. We've reviewed some of the best candidates in this list of the top 15 cryptocurrencies for 2023, as analyzed by the Cryptonews Industry Talk team.
By Joel Frank | Original Link