LTC, the token of Litecoin, the cryptocurrency that powers the cryptocurrency-focused Litecoin blockchain, was trading down about 3.5% on Thursday. LTC retreated below its 21-day moving average at $95.50 and previous weekly highs around $98.50.
The latest cryptocurrency pullback comes amid a general drop in cryptocurrency prices. This decline comes after new US data (weekly jobless claims) highlighted a still-sensitive labor market and economy. This data has put pressure on risky assets and supported expectations for a strengthening of Fed monetary policy.
Technical selling is probably also playing a role. Since falling below an uptrend that had been in play since last November at the end of last week, Litecoin progressedbut it was never able to break above that uptrend that previously offered support.
Indeed, Litecoin failed to break above this trend on Wednesday. As a result, this situation contributed to the turnaround on Thursday, although its 50-day moving averagelocated at $93, could offer support to LTC.
This latest pullback from Litecoin comes despite new evidence of adoption of cryptocurrency as a mainstream means of payment. According to a recent report published by CoinGate.com, LTC payments account for 9.5% of total cryptocurrency payments made to CoinGate merchants.
This figure is impressive considering that Litecoin accounts for only around 0.6% of the total cryptocurrency market capitalization. Its market capitalization is currently close to $6.8 billion, compared to a total cryptocurrency market capitalization of around $1.06 trillion.
Litecoin Price Prediction: What’s Next for LTC?
Considering that LTC has dipped below its November 2022 uptrend, it might be harder to get back above $100 short term. It is more than likely that we will see tests of the recent lows between $88 and $90. But if the broader crypto market continues to keep calm and gradually rise in the coming months, Litecoin is a good candidate to continue its strong performance.
Indeed, cryptocurrency has some positive drivers right now. The use of Litecoin as an exchange platform should continue to grow thanks to the recently concluded partnership with Mastercard. The payment company will soon start offering Litecoin-based cards to UK and EU customers. The company has already implemented a similar program in the United States which was a great success.
However, it has recently been reported that MasterCard will postpone the launch of cryptocurrency-related products due to market and regulatory uncertainty. In the meantime. Just as the Bitcoin blockchain has seen renewed interest following the success of the Ordinal protocol based on the recently deployed non-fungible tokens (NFTs), the same goes for Litecoin.
According to a recent tweet from the Litecoin Foundation, 20,000 Litecoin Ordinals were registered directly on the Litecoin blockchain in the space of three days only. Litecoin could also be one of the main beneficiaries of the expected rise in cryptocurrency markets when Hong Kong authorities restore market access for traders later this month. According to a tweet from Litecoin’s official account, mainstream cryptocurrencies “must rank on at least two of the five indices to gain approval from SFC Hong Kong.” However, “Only 4 cryptos have four or more, one of which is Litecoin.”
In the long term, Litecoin could therefore be able to continue its progress that began last November, when LTC briefly fell below the $50 mark. The main levels targeted by the bulls are the February highs located around $106. Moreover, highs last March were in the $130 area and a key long-term support and resistance area was located around $140.
Alternatives to consider compared to LTC
The outlook for LTC is theoretically quite good. Nonetheless, traders looking for quick wins might consider turning to other high-potential tokens, such as those being pre-sold by promising and up-and-coming cryptocurrency projects. We’ve reviewed some of the top contenders in this list of 5 Best High Valuation Cryptocurrencies To Invest In Nowas analyzed by the Cryptonews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects.
Warning : The “Industry Talk” section presents the views of cryptocurrency industry players and is not part of the editorial content of Cryptonews.com.