Litecoin price has been underperforming the market since the buzz around the halving event has faded away. LTC dropped to as low as $80, the lowest level since June 21st, showing a decrease of 28% since its peak this year.
This trend is a reflection of the entire crypto industry’s performance. Bitcoin, its biggest peer, has stayed around the $29,000 mark in the past few weeks, while the total crypto market capitalization has been stuck at $1.12 trillion.
The Litecoin price has been ignoring some major events in the ecosystem. Last week, it went through the halving process, reducing the miner rewards in the network. Usually, Litecoin and other cryptos tend to be volatile before and after a halving event.
Furthermore, it had a minor reaction to last week’s credit rating downgrade of US debt by Fitch Ratings. This should have been a positive thing for Bitcoin and altcoins since they are designed to be anti-dollar.
On-chain metrics show that the number of Litecoin transactions has been quiet in the past few months. However, the hash rate is still at an all-time high of 800 TH/s, which is a good sign since it indicates the network’s health.
Now, let’s take a look at the Litecoin price prediction. Since Bitcoin and Litecoin have a close correlation, the future of LTC price will depend on the performance of BTC. On the daily chart, the LTC has dropped below the critical resistance level at $105.75, the highest point of February.
Moreover, the coin has demonstrated a head and shoulders pattern, which is usually a bearish sign. It has also gone beneath the 50-day and 200-day moving averages, which are about to form a bearish crossover, called the death cross. Additionally, Litecoin has formed a bearish flag pattern.
Therefore, the outlook for Litecoin price is bearish, with the next level to watch being at $71.20.
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