Litecoin (LTC) has weakened from $116.05 to $55.79 since July 02, 2023, and the current price stands at $61.55.
Fundamentals of LTC are usually tied to the overall cryptocurrency market, which remains under pressure after the price of Bitcoin hit new October lows this Wednesday and plummeted again below the $27000 level.
But where is the price of Litecoin LTC going next, and what can we expect from the rest of October 2023?
Today, Crypto Lists will discuss Litecoin (LTC) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
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- 1 Bearish mood among Litecoin whales
- 2 U.S. producer prices increased surprisingly in September
- 3 Technical analysis for Litecoin (LTC)
- 4 Important support & resistance levels for Litecoin (LTC)
- 5 What speaks for the rise in the Litecoin (LTC) price
- 6 What indicates the downfall of Litecoin (LTC)
- 7 What do analysts and experts say?
Bearish mood among Litecoin whales
Litecoin has demonstrated a strong positive trend from mid-June to the beginning of July 2023 and experienced a huge volatility due to its halving event that occurred on 2rd August 2023. Due to its halving cycle in August 2023, mining rewards were reduced from 12.5 LTC per block to 6.25 LTC per block, and it is important to say that the Litecoin Halving Cycle takes place every 840,000 blocks according to a predetermined Litecoin halving schedule defined in the Litecoin protocol. Two Litecoin halving events have already taken place before the latest one in August 2023; the first was in 2015, and the second halving event occurred in 2019.
The Litecoin network halving in 2015 reduced the Litecoin block reward from 50 LTC each block to 25 LTC each block, while the second halving event in 2019 reduced the block reward in half from 25 LTC to 12.5 LTC per block. The bearish mood among Litecoin whales seems to be a major factor escalating the LTC price downtrend, and according to on-chain data compiled by Santiment, crypto whales holding 10,000 to 10 million LTC entered a selling spree in August and considering how influential whales are in blockchain communities, it was only a matter of time when retail investors would start to follow their trades.
U.S. producer prices increased surprisingly in September
This Wednesday, there was a fresh decline in Bitcoin, Ethereum, Litecoin, and other altcoins against the U.S. Dollar, and one of the reasons behind this move is the fact that the United States reported that the Producer Price Index (PPI) for September came above expectations — 2.2% compared 1.6% year-on-year. This added to concerns about lingering U.S. inflation pressures, with dollar strength up and risk assets down, and it is still not sure if the Federal Reserve will decide to raise interest rates above current levels at its next policy meeting.
The U.S. producer prices increased more than expected in September amid higher costs for energy products, and the next focus points for investors are expected to be Thursday’s consumer inflation data and earnings season, which kicks off on Friday.
In the past 24 hours alone, nearly $50.3 million in long positions have been liquidated across the crypto market, and in the short term, the cryptocurrency market will continue to navigate multifaceted challenges and the ebb and flow of various economic factors. Geopolitical uncertainty could also trigger risk-off movement from the cryptocurrency market, and the focus of investors also remains on escalating fighting in the Middle East between Israel and the Palestinian Islamist group Hamas.
Investors and traders remain cautious with the current LTC’s price at $61.45, and some crypto analysts say that they would not be surprised to see Litecoin at even lower price levels in the weeks ahead, especially if Bitcoin continues to maintain a downside trajectory.
Technical analysis for Litecoin (LTC)
Litecoin (LTC) has weakened more than 40% since July 02, 2023, falling from $116.05 to a low of $55.79. Litecoin’s current price stands at $61.45, and according to technical analysis, bears continue to control the price movement. As long the price of LTC is below $70, we can’t talk about a trend reversal, and the price of this crypto remains in the SELL-ZONE.
Important support & resistance levels for Litecoin (LTC)
On this chart (the period from February 2023), I marked important support and resistance levels that can help traders understand where the price could move. Litecoin (LTC) remains under pressure, but if the price advances above the resistance that stands at $70, the next target could be an important resistance level at $80.
The current support level is $60, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $55. If the price drops below $50, which represents a very important support level, the next target could be located around $40.
What speaks for the rise in the Litecoin (LTC) price
The cryptocurrency market has historically been known for its volatility, and while efforts were being made to stabilize the market, fluctuations are still expected to be a common occurrence. The upside potential for Litecoin (LTC) probably remains limited for the rest of October 2023; still, if the price advances above $70, the next target could be resistance at $80. A move above $80 would be beneficial for the bulls to remain in control of price movement.
The overall sentiment on the cryptocurrency market plays a very important role in LTC’s price trajectory, and if investors regain confidence further, an upside potential could benefit LTC. The U.S. Securities and Exchange Commission (SEC) will have some key decisions in the days ahead, including decisions for several pending spot Bitcoin ETF applications.
October 17 is the second deadline for the SEC to decide on the iShares Bitcoin Fund, VanEck Bitcoin Trust, Wisdomtree Bitcoin Trust, Invesco Galaxy Bitcoin ETF, and Wise Origin Bitcoin Trust, and the SEC approval would certainly positively influence the price of Litecoin and many other cryptocurrencies.
What indicates the downfall of Litecoin (LTC)
The period since July 02, 2023, has been very negative for Litecoin, and investors should continue to take a defensive investment approach as the macroeconomic landscape remains uncertain. The bearish mood among Litecoin whales seems to be a major factor that influenced the LTC price downtrend, but the overall sentiment on the cryptocurrency market also plays a very important role in LTC’s price trajectory.
The move followed United States inflation data in the form of the Producer Price Index (PPI) for September, which came above analysts’ expectations — 2.2% compared to 1.6% year-on-year. This added to concerns about lingering U.S. inflation pressures, with dollar strength up and risk assets down, and because of this, many analysts say that Bitcoin will likely maintain a downside trajectory in the weeks ahead. There are expectations of “market turbulence,” and it is still unsure if the Federal Reserve will decide to raise interest rates above current levels.
When the price of Bitcoin drops, that usually has a negative influence on the price of Litecoin and on the rest of the cryptocurrency market, and for now, the bears continue to control the price of Litecoin. On the other side, Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further; however, this was before the newest inflation data.
The current support level for LTC stands at $60, and if the price falls below this level, the next target could be $55. The price of Litecoin is usually correlated with the price of Bitcoin, and if the price of Bitcoin drops below the $25000 price level, that would certainly have a negative influence on the price of LTC.
What do analysts and experts say?
Litecoin (LTC) has been moving in a downtrend since July 02, 2023, and many crypto analysts say that the fact that investors have lost interest in accumulating LTC indicates that we will continue to see low prices for this crypto. This Wednesday, there was a fresh decline in Bitcoin, Ethereum, Litecoin, and other altcoins against the U.S. Dollar, and one of the reasons behind this bearish move is the fact that the United States reported that the Producer Price Index (PPI) for September came above expectations — 2.2% compared 1.6% year-on-year.
This added to concerns about lingering U.S. inflation pressures, with dollar strength up and risk assets down, and many analysts expect that the U.S. central bank could keep interest rates at restrictive levels for a longer period, which is not good for risk-on assets such as cryptocurrencies.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.