Why is Litecoin price up today?

Litecoin (LTC) worth is up right now, hitting a recent three-week excessive amid a broader cryptocurrency market rally.

On Sep. 19, LTC worth rose 3.85% to almost $68.50, outperforming the crypto market that gained 2% on the identical day. Nonetheless, the Litecoin market has underperformed the broader crypto market in 2023.

Associated: Bitcoin investors are bullish on the US Fed’s $100B loss

It is down 3.85% year-to-date (YTD) in comparison with the latter’s 39% gains in the identical interval. 

Price pause bets enhance Litecoin’s worth restoration

Most of this week’s consideration out there is on the Federal Open Market Committee (FOMC) assembly concluding on Sep. 20. There, Federal Reserve officers will possible resolve to pause the ongoing interest rate hikes. 

The speed pause bets have boosted buyers’ urge for food for dangerous belongings, with U.S. shares and most crypto belongings rising forward of the choice. On the identical time, the U.S. dollar has underperformed towards a basket of high foreign currency, with its benchmark index down 0.5% week-to-date, together with selloffs on Sep. 19.

Litecoin and the greenback’s weekly correlation coefficient has been destructive since December 2021, which means their chance of trending reverse to 1 one other stays excessive. LTC is, due to this fact, transferring larger on Sep. 19 simultaneous to the greenback’s draw back strikes.

LTC worth: technical rebound

Litecoin’s market positive factors on Sep. 19 come as part of a rebound development that began final week.

Notably, the shopping for began close to what seems to be a long-term ascending trendline assist, which has capped Litecoin’s draw back makes an attempt since December 2018. The LTC worth has bounced 18.5% eight days after testing the stated trendline.

Quick liquidations

Litecoin’s worth positive factors has resulted briefly liquidations value round $477,300 on Sep. 19. As compared, solely $87,850 value of lengthy positions have confronted liquidations, as proven within the CoinGlass chart under.

Liquidating quick positions require derivatives merchants to purchase the underlying asset, which, coupled with the shopping for conduct in spot markets, enhance the asset’s costs.

Litecoin worth evaluation for Q3/2023

From a technical standpoint, a Litecoin worth bounce from its long-standing ascending trendline assist may lengthen towards its multi-month descending trendline resistance, as proven under.

In consequence, LTC worth can attain $78.50 as its subsequent upside goal within the coming weeks, up round 16.5% from present worth ranges. The $78.50-level has served as assist in March 2023 and June 2023 and was additionally resistance in January 2023.

As well as, this stage coincides with Litecoin’s 50-week exponential transferring common (50-week EMA; the pink wave within the chart above).

This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer includes threat, and readers ought to conduct their very own analysis when making a choice.