Litecoin price prediction: here’s why the LTC could soon soar to $200
The Litecoin price is holding steady as momentum comes back to the cryptocurrency industry. LTC is trading at $181, which is about 31% above the lowest level this month. It has a total market capitalization of more than $12 billion and is the 15th biggest cryptocurrency in the world.
LTC fundamental analysis
Litecoin is a proof-of-work cryptocurrency that is relatively similar to Bitcoin. It is a peer-to-peer currency that is known for speed, reliability, and relatively lower costs. Many people who use it do so because it is a viable alternative to Bitcoin, which is known for higher costs and higher congestions.
The Litecoin price tends to track that of Bitcoin. Indeed, the two have a correlation coefficient of about 0.95%, meaning that their prices move in unison. Litecoin rises when Bitcoin rises and vice versa.
The LTC price has rallied this week because of several catalysts. First, the risks of an American government debt default have eased after the Senate reached a deal to expand the debt ceiling.
Analysts believe that a default of the country’s debt obligations would have been bearish for all assets, including stocks and cryptocurrencies.
Second, there are signs that more institutional investors are moving into cryptocurrencies. For example, this week, Soros Fund Management said that it had invested in Bitcoin. The head of the fund insisted that its Bitcoin holdings were relatively small. At the same time, US Bancorp said that it will start providing custody solutions for institutional investors.
Third, the Litecoin price rallied because of the rising momentum in the industry. A quick look shows that most digital currencies rallied this week. Some of the top performers were the likes of Terra, Shiba Inu, and Dogecoin. Finally, a committee hearing by Gary Gensler did not have any bombshells that could have an impact on the coins.
Litecoin price prediction
The four-hour chart shows that the LTC price has been in a strong bullish trend in the past few days. The coin rose to the highest level since September 18 this week. It has also moved above the 25-day and 50-day moving averages, which is a bullish sign. The price is also along the 38.2% Fibonacci retracement level while oscillators like the RSI have continued rising.
Therefore, the Litecoin price will likely keep rising as bulls target the next key resistance level at $200, which is along the 23.6% retracement level