Litecoin price was in a narrow range on Thursday as investors began to position their assets for September. The LTC coin rose slightly to a high of $55.80, which was slightly above the week’s low of $52.36. Its market cap is over $3.2 billion.
Hawkish Federal Reserve
Litecoin price has been under pressure as investors focus on the fiery tone by the Federal Reserve. In a statement at the Jackson Hole symposium in Wyoming, Jerome Powell stressed that the bank will continue to hike interest rates in the coming months.
His sentiment was shared by other Federal Reserve officials such as Charles Evans and Neil Kashkari. In a statement Wednesday this week, the Cleveland Fed’s Loretta Meester said the bank will continue to hike and maintain high interest rates until inflation rises to 2%.
Historically, cryptocurrencies like bitcoin and LTC have underperformed during a hawkish Federal Reserve period. This also explains why cryptocurrencies and stocks have continued their bearish trend over the past few months. really. US stocks have fallen over the past five days.
Litecoin price has also been weak due to sluggish demand for the coin. With the cryptocurrency down more than 50% this year, many users of LTC have stayed away. This is evident from on-chain data which shows weak demand in the ecosystem.
Meanwhile, the coin has been lagging on the back of a fairly strong US dollar. The US dollar index has reached the highest level in 20 years. Litecoin and other cryptocurrencies have an inverse relationship with the US dollar.
Litecoin Price Prediction
The daily chart shows that LTC price has been under pressure over the past few months. It is down 86% from its 2021 highs. A closer look shows that the coin has formed a bearish flag pattern, which is usually a bearish signal.
It has moved below the 25-day and 50-day moving averages, while the relative strength index (RSI) has moved below the neutral point at 50. Hence, there are chances that the coin will have a bearish breakout in September. If it does, the next major support level to watch would be $40.