Litecoin price was trading higher on Monday, wiping some of its losses from its previous trading session. The coin’s market cap has increased by 2.59% over the last day, while the total volume of LTC traded jumped 39.96% higher. The altcoin was trading 1.37% higher at $89.94% at the time of writing. Litecoin is currently the 13th largest cryptocurrency by market capitalization, after Binance USD and ahead of Shiba Inu.
Litecoin price has been under intense pressure for the past few days, plunging more than 12% in the past week. The altcoin has dropped more than 17% from its highest level this year but remains 34% above its lowest point in 2023.
Most altcoins, including Litecoin, have been in the red for the past few days amid a sharp decline by Bitcoin. Bitcoin, the largest cryptocurrency by market cap, has posted a 9% plunge over the past week, dropping below $27,500. As the largest cryptocurrency, many altcoins tend to move in tandem with its performance. BTC’s total market cap has crashed to $529 billion over the past few days, with its dominance in the crypto market declining.
The recent downtrend in the crypto market has also seen most altcoins decline over the past week with XRP, Cardano, Dogecoin, and Polygon, falling by 9.44%, 12%, 14.52%, and 14.55%, respectively. Concerns over macroeconomic factors have been pushing crypto prices lower. Markets have been in jitters ahead of the Fed’s next monetary policy meeting in May as traders price in a 25-basis point. Hints that the US Central Bank might approve another interest rate hike in June after the one expected in May, may continue weighing on the LTC price.
Even so, Litecoin’s third halving event slated for August 2, 2023, might pump the coin’s price higher. The halving event is a programmed change in the supply rate of new coins in a cryptocurrency’s blockchain. Historically, LTC’s halving events have always seen the Litecoin price skyrocket. In the run-up to its last halving event in 2019, the LTC price soared by 375%. If history repeats itself, LTC price could start gaining with its halving event almost 100 days away. However, macroeconomic factors could come into play and affect the price of the asset.
The daily chart shows that the Litecoin price has been on a steep decline for the past few days, falling 12% in the past week. The altcoin has managed to drop below the 50-day and 100-day moving averages, while moving below and above the 50-day and 200-day exponential moving averages, respectively. The Moving Average Convergence Divergence (MACD) indicator is bearish.
I expect the Litecoin price to tick higher in the medium term as buyers eye the next resistance levels at $93.50 and $100. On the flipside, a move below the crucial support level at $83.30 will invalidate my bullish thesis.