Litecoin price erased gains made over the past three weeks to trade at an intraday low of $87.21 on Wednesday. While it recouped some of those losses in early Thursday trade, the market remains wary of a further decline. As is often the case, altcoins tend to move in tandem with the largest crypto – Bitcoin. Overall, uncertainty in the macroeconomic environment continues to impact the sector.
Bitcoin, the leading cryptocurrency by means of market capitalization dropped further away from the crucial zone of $30,000 on Wednesday after trading above it for about a week. As is often the case, most altcoins have followed the trend set by BTC/USD. Even so, the likes of litecoin price recorded an event higher decline in the previous session. Compared to bitcoin’s decline of 6.44%, ethereum drop by 8.47% while litecoin, Cardano, and Dogecoin fell by 13.74%, 7.96%, and 9.57% respectively.
Macroeconomics remain a key driver of cryptocurrencies and the overall financial markets. Ahead of the Fed policy meeting schedduled for early May, there have been tapering expectations of a dovish tone by the US central bank. Signs that the bank may approve another rate hike in June after the one priced in for May may continue to weigh on litecoin price in the ensuing sessions.
Litecoin price prediction
Litecoin price dropped by close to 15% on Wednesday after extending its gains to a two-month high in the previous session. Granted, it has recouped some of those losses in early Thursday trade. After hitting an intraday low of 87.21 on Wednesday, it was trading at 90.80 as at the time of writing.
As seen on its daily chart, the recorded plunge had LTC/USD trading below the 25 and 50-day EMAs. In fact, it was hovering around the 50-day EMA on Thursday.
I remain cautiously bullish over litecoin price. However, the bears have an opportunity to pull back the asset past the support level of 84.36. In fact, a move below that level will invalidate this thesis.
In the immediate term, the range between 87.69 and 93.70 will be worth watching. Even with further rebounding, the altcoin will likely continue to find resistance at 95.13 in the short term.