- LTC price has struggled to move above its year-to-date high.
- Litecoin halving countdown is continuing.
- The Fed will be a big game in town in June.
Litecoin price had a difficult time in May this year as it struggled moving above the year-to-date high of $103.15. The coin’s performance during the month was nothing to talk about as its price dropped to a low of $75.67.
LTC halving countdown goes on
Litecoin price has done well in the past few months. Its recovery started in June last year when the coin crashed to a low of $40. In this period, it has managed to outperform Bitcoin, which started recovering earlier this year.
Other internal metrics shows that Litecoin has been doing well recently. For example, the hash rate has jumped to the highest level on record, signaling that the network has become safer. Litecoin mining difficulty has held steady.
The biggest catalyst for Litecoin price is the upcoming halving event that will take place in August this year. As we wrote here, halving is a situation where the block rewards provided to miners are reduced by half.
The goal of halving is to reduce the amount of Litecoin being unleashed in the market by miners. It also reduced the amount of coins that are being provided in the market.
Like Bitcoin, Litecoin halving happens every four years. In this case, it will happen in the next 58 days when the block height jumps to 2.520,000. Therefore, LTC price will still be reacting to this halving event in June this year.
LTC price will also react to the actions of the Federal Reserve, which will meet on June 16. Analysts believe that the bank has some room for higher rate hikes in this meeting. Precisely, it could hike rates by 0.25% since inflation remains at an elevated level in the block. Signs of more rate hikes will push LTC and other cryptocurrencies lower in June and vice versa.
Litecoin price prediction
The daily chart shows that the LTC crypto price has moved sideways in the past few days. It has struggled to move above the year-to-date high of $103.15. The coin has moved slightly above the 50-day and 100-day exponential moving averages (EMA).
A closer look shows that it has formed what looks like a double-top pattern. In price action analysis, this pattern is usually a bearish sign. It has also formed a smaller double-top pattern. Therefore, buyers need to wait for a confirmation above $103.15.
A move above this price will see the coin explode higher to the next resistance point at $134.45, the highest point on March 30. A move below the key support at $75 will signal that bears have prevailed.
Contributors
