Litecoin price has been under intense pressure for the past few days as investors continue to digest Silvergate’s potential collapse and a hawkish Fed. LTC has slipped by more than 15% in the past week but remains 18% higher in the year to date. The altcoin ranks as the 15th largest cryptocurrency after TRON and before DAI.
Litecoin price has staged a steep decline in the past few days against the backdrop of a bearish crypto market. Statistics by Coinmarketcap show that the global crypto market cap has decreased by 1.45% in the past 24 hours and currently sits below the crucial level of $1 trillion. The total crypto market volume has also dropped by 6.34% over the last day.
The overall crypto market has been reacting to Silvergate’s recent announcement of a potential crash. The Californian bank’s crash will be the next biggest failure in the crypto industry after FTX’s collapse and Terra’s LUNA meltdown.
Earlier on Wednesday, Silvergate announced that it will be winding down its operations and liquidating its bank. Silvergate Capital has served as one of the crypto-focused banks along with New York’s Signature Bank. Silvergate bank recently announced that it was evaluating its financial health following FTX’s collapse, which was a major customer.
Markets have also been reacting to Powell’s statement at his congressional appearance earlier on Tuesday. Fed chair Jerome Powell announced that the US Federal Reserve is likely to hike its interest rates higher than anticipated earlier in a bid to combat the persistent consumer prices increase.
Litecoin Price Outlook
Most cryptocurrencies have been in the red for the past few days, and Litecoin is no different. LTC price has been on a steep downtrend for the past few days, moving below the 25-day, 50-day, and 100-day moving averages. Its Relative Strength Index (RSI) holds slightly above the oversold region, pointing to increased selling pressure.
Therefore, the next levels to watch for the Litecoin price will be important support levels of $80 and $73.70. However, a move past the key resistance level at $93.30 will invalidate the bearish thesis.