The Litecoin price has been under intense pressure lately, and, as I will describe below, the situation could get worse soon, The LTC coin is trading at $171, which is about 10% below the highest level this week. Other altcoins like Bitcoin Cash, Ethereum, and Cardano have also erased some of their previous gains.
LTC price retreats
Litecoin is a leading cryptocurrency that is used mostly for payment purposes. The community uses it to avoid the substantial fees charged by Bitcoin. Still, like Bitcoin, most Litecoins in existence today are held by investors. Indeed, I have not seen any company that accepts the coin as a means of payment.
In most cases, Litecoin is known for its close correlation with Bitcoin. Its price tends to rise when Bitcoin rises and fall when its price declines. Indeed, the LTC price jumped to $190 this week when Bitcoin jumped to more than $50,000 for the first time in more than 2 months.
At the same time, it has declined by about 10% when Bitcoin moved to slightly above $48,000. Therefore, the coin will likely react to the upcoming Jackson Hole summit. Analysts expect that policymakers like Jerome Powell will talk about monetary policy, which will have an impact on the price of Bitcoin and Litecoin.
Litecoin price prediction
A closer look at the four-hour chart shows that Litecoin has formed a double-top pattern at around $190. In price action, this pattern is usually a bearish sign. The chin or neckline of this pattern is at $162. As if that is not enough, the coin has managed to move below the ascending trendline that is shown in red. Additionally, it has fallen below the 25-period and 50-period weighted moving averages (WMA). These patterns are in line with what I warned before in this article.
Therefore, while the overall outlook of LTC is bullish, we can’t rule out a situation where it declines substantially in the next few days. The next key level to watch will be the neckline at $160. This view will be invalidated if the price rises above $188.