A breakdown of the recent Litecoin price action, long-term Technical Analysis, and the current macro backdrop for cryptocurrencies.<\/p>\n
On Tuesday, Litecoin<\/a> (LTC) is slightly softer at $150.16 (-2.05$) in early trading. LTC has lost -27% in December, over 50% from the November highs, and 65% below May\u2019s three-year high. Litecoin\u2019s market cap has fallen from $25.9 billion to approximately $10.6 b in the last seven months, currently ranking LTC as the 18th most valuable cryptocurrency.<\/p>\n Like most legacy cryptocurrencies, Litecoin never recovered from the crypt collapse in May. While some, like Bitcoin and Ethereum, forged new highs in November, helping the crypto market reach a $3 trillion valuation, LTC struggled to regain the form it saw at the start of 2021. Furthermore, Litecoin has underperformed the broader market on the way down. <\/p>\n Several macro factors are weighing down cryptos at the moment, including the FOMC\u2019s decision to accelerate the taper timeline. The hawkish stance has pushed the US dollar to an 18-month high and destabilised equity markets. As a result, investors have reduced exposure to risk assets, including cryptocurrencies. This morning, BTC is trading at $47,00, around 32% below the November all-time high. Subsequently, the Litecoin price has retraced to a significant support long-term level, which LTC must maintain to keep the 2021 bull market alive. <\/p>\n The weekly chart shows the Litecoin price is approaching confluent support around $140. A rising trend line from October 2020, aligned with the September lows, should provide a considerable long-term floor. As long as LTC remains above the trend support, it could turn higher onto the $200-$240 range in the medium term. <\/p>\n However, if LTC closes below the trend (on a weekly basis), I expect long liquidation to follow. In that event, the price should extend toward the July low of $104.<\/p>\n See also<\/p>\n For now, I am cautiously optimistic. However, traders should pay close attention to overall macro sentiment, as a broader risk-off in stocks will exert negative pressure on Bitcoin, and subsequently, Litecoin.<\/p>\n For more market insights, follow Elliott on Twitter<\/a>.<\/p>\n<\/p><\/div>\nLTC Price Forecast<\/h2>\n
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<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\nLitecoin Price Chart (Weekly)<\/h2>\n
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