- Litecoin has underperformed other cryptocurrencies in the ongoing bull run.
- It remains about 37% from the highest point in July of this year.
- It has formed a bullish inverted head and shoulders (H&S) pattern.
Litecoin price has been quite volatile in the past few days as the recent bullish trend fades. The LTC coin peaked at $76.88 last week and has now retreated to about $72. It has jumped by more than 25% from its lowest point in September, underperforming most of its peers like Bitcoin, Ethereum, and Bitget Token.
LTC is underperforming
Litecoin has lagged the performance of other cryptocurrencies in the past few months. It lost its previous hype after it implemented its halving in August of this year. Indeed, while Bitcoin is sitting at its highest point since May last year, Litecoin has plunged by over 37% from its pre-halving high.
Litecoin has reacted mildly to recent events in the crypto industry even though it could be a direct beneficiary. The biggest event was the recent application of a spot Bitcoin ETF by companies like Blackrock, Franklin Templeton, Invesco, Fidelity, and Ark Invest.
Last week, Blackrock applied for a separate Ethereum ETF application. For one, this was a sign that the biggest asset manager in the world was confident that its Bitcoin ETF would be approved.
Therefore, if this happens, these companies will likely look toward other proven cryptocurrencies that have a substantial market share. Litecoin is one of them since it uses the same technology as Bitcoin. It is also a big cryptocurrency with a total market cap of over $5.3 billion.
Litecoin also has substantial daily trading volume. According to CoinGecko, its 24-hour trading volume stood at over $612 million. And like Bitcoin, Litecoin has proven that it cannot be manipulated.
Meanwhile, Litecoin’s hash rate has moved sideways in the past few months. It stands at 840, which is lower than the year-to-date high of over 920. Hash rate is an important metric that looks at how much computing power is being used by a network to process transactions.
Read more: How to buy Litecoin with PayPal.
Litecoin price forecast
The daily chart shows that the LTC price has crawled back in the past few days. It formed an inverted head and shoulders pattern whose neckline was at $70.70. In price action analysis, this pattern is one of the most accurate bullish signs. It has formed a break and retest pattern by moving back to the neckline.
Litecoin has remained above the 50-day moving average. The price is also between the Woodie pivot point and the first resistance point. Therefore, the outlook for the coin is bullish, with the next point to watch being the psychological point at $80.
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