Crypto

Litecoin price prediction ahead of US inflation data

The Litecoin price has crashed hard in the past few months. We explain what to expect in the coming days ahead of US CPI data. The post Litecoin price prediction ahead of US inflation data appeared first on Bankless Times. ...

The Litecoin price is trading at a key support level as investors remain concerned about the state of the monetary policy in the United States and around the world. The LTC coin is trading at $130, which is about 56% below the highest level in December. It is also about 70% below its highest level in 2021. 

Hawkish Fed concerns

Litecoin and other cryptocurrencies have declined sharply in the past few months as investors worry about the Federal Reserve. With the economy recovering investors are worried that the Fed will move quicker than expected. 

The Fed has already started tightening its policies. In November, the bank decided to reduce the size of its asset purchase program by about $15 billion. It then decided to double this tapering to $30 billion in December. 

Last week, the Fed published the minutes of this meeting. These minutes showed that the bank was more hawkish than expected. Most members concluded that the bank will be more hawkish this year. That will include implementing about 3 rate hikes even as the number of Omicron cases rose. 

1

Minimum Deposit
$50
Exclusive Promotion

User Score
10

More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities

Buy crypto, or trade cryptocurrencies via CFDs

This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.

Data published on Friday provided more incentives for the bank to hike rates. For example, the numbers revealed that the American economy added 199k jobs in December while wages rose by 4.7%. The unemployment declined to a pandemic-era low of 3.9%. If the trend continues, the unemployment rate will fall to about 3.0% later this year. 

The Litecoin price will next react to the latest American consumer inflation data scheduled for Tuesday. These numbers are expected to show that the American inflation jumped to 7% in December. This figure will be about 5% above the Fed’s target of 2%.

Therefore, the Litecoin price will likely remain under pressure considering that it did well in a period of low-interest rates. 

Litecoin price prediction 

litecoin pricelitecoin price

The daily chart shows that the LTC price has been in a bearish trend in the past few months. Along the way, the coin has moved below the 50-day and 25-day moving averages. It has also moved below the neckline of the head and shoulders pattern. The coin has also declined below the lower side of the bearish flag pattern. 

Therefore, the path of the least resistance for the Litecoin price is to the downside. This will see it drop to the key support level at $80.

{“@context”:”https://schema.org”,”@type”:”Person”,”url”:”https://www.banklesstimes.com/author/crispus/”,”worksFor”:”Bankless Times”}

The post Litecoin price prediction ahead of US inflation data appeared first on Bankless Times.

Leave a Reply

%d bloggers like this: