Litecoin price continued its decline on Wednesday as the market shifted its attention to the upcoming FOMC minutes. LTC reached a low of $78.78, which is the lowest level since June 20th, and has dropped more than 32% since its peak in July. Other coins like Bitcoin, Ethereum, and XRP have also seen a retreat in their prices.
The loss of momentum in Litecoin in recent weeks could be attributed to the hype of the halving event slowly fading away. Generally, cryptocurrencies tend to do well ahead of a major event, before losing steam shortly after. This is known as buying the rumour and selling the news.
The FOMC minutes will be the next major catalyst that will move the LTC price. The minutes will show the discussions and decisions made in the last meeting, where the bank voted to hike interest rates by 0.25%. In the past, the Fed minutes have had an effect on various assets such as stocks and cryptocurrencies, but this time the reaction of Litecoin and other coins might be more subdued.
Recent macroeconomic news has also failed to have an effect on the prices of Litecoin and Bitcoin. Last week’s US inflation data, which showed that US inflation (apart from housing) was decreasing faster than expected, had no effect on the price of the coins. Similarly, China’s weak economic figures which showed a decline in imports and exports, as well as a slower than expected increase in retail sales and industrial production, did not lead to any significant price movement.
The daily chart of the Litecoin price shows that it has been in a downward trend after reaching a peak of $114 in July. It has now dropped below the 50-day moving average and the crucial support of $82.50, which was the lowest point on June 28th. The two lines on the MACD indicator have gone down close to -3, while the Relative Strength Index (RSI) has gone into the oversold zone. Additionally, the price remains below the resistance level of $103.60, which is the highest point in February and March.
This suggests that the Litecoin price is likely to go further southward, with the next level to watch being $64.77 – the lowest swing on March 11th, which is about 18% lower than the current price.
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