- LTC price has formed a small double-top pattern.
- Its pullback has coincided with the strong dollar comeback.
- The Fed will publish its minutes on Wednesday.
Litecoin has been one of the best-performing cryptocurrencies in the past nine months. It has cruised from last year’s low of $40 to a year-to-date high of $103. LTC has outperformed other big-cap coins like Bitcoin, Ripple, and Polygon.
It has been unclear why Litecoin price has done well since June. In my past articles, I have identified some of the reasons for this performance to the overall rotation from BTC to ETH because of its lower transaction fees.
Another reason is the fact that Litecoin’s hash rate has been soaring since the Ethereum merge event that happened in 2022. The argument is that many ETH users moved from the network into LTC after it moved to become a proof-of-stake (PoS) network. Regulators, especially in the United States, believe that Ethereum became a financial security after this transition.
Meanwhile, like I wrote in this report, LTC has shown encouraging on-chain data metrics including the rising number of holders and transactions.
Litecoin price prediction
On the daily chart, we see that the LTC crypto price has been in a spectacular rally in the past few months. It has successfully cruised from a low of $40 to above $100. Recently, however, the coin has lost its bullish momentum. This is important since it happened when it reached the psychologically-important level of $100.
A closer look shows that Litecoin has formed what looks like a double-top pattern whose neckline is at $88. This pattern is usually a bullish sign. In most cases, this pattern is usually a sign that the bullish momentum is coming to an end and that a new bearish momentum is about to start.
On a positive side, Litecoin remains supported by the 50-day and 100-day moving averages. Therefore, while the double-top is a dangerous pattern, the coin’s bearish breakout will be confirmed if it moves below the support at $88.
If there is a bearish breakout, the next key level to watch will be at $84.98 (December 5 high). Another crash below that level will see it crash to the next support level at $73.43. This price is derived by measuring the distance between the head and the neckline.
Please note that the upcoming Fed minutes will have an impact on Litecoin and other cryptocurrencies. The minutes will likely provide more clarity about what the Fed will do. A hawkish tone will mean that the strong US dollar index will continue, which will hit LTC and other coins.
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