Litecoin (LTC) value is up at the moment, hitting a recent three-week excessive amid a broader cryptocurrency market rally.
On Sep. 19, LTC value 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.
It is down 3.85% year-to-date (YTD) in comparison with the latter’s 39% positive aspects in the identical interval.
Charge pause bets increase Litecoin’s value 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 doubtless determine to pause the continuing rate of interest 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 similar time, the U.S. greenback has underperformed in opposition to a basket of prime foreign currency echange, 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, that means their likelihood of trending reverse to 1 one other stays excessive. LTC is, due to this fact, shifting larger on Sep. 19 simultaneous to the greenback’s draw back strikes.
LTC value: technical rebound
Litecoin’s market positive aspects on Sep. 19 come as part of a rebound pattern that began final week.
Notably, the shopping for began close to what seems to be a long-term ascending trendline help, which has capped Litecoin’s draw back makes an attempt since December 2018. The LTC value has bounced 18.5% eight days after testing the stated trendline.
Litecoin’s value positive aspects has resulted briefly liquidations price round $477,300 on Sep. 19. As compared, solely $87,850 price of lengthy positions have confronted liquidations, as proven within the CoinGlass chart under.
Liquidating brief positions require derivatives merchants to purchase the underlying asset, which, coupled with the shopping for habits in spot markets, increase the asset’s costs.
Litecoin value evaluation for Q3/2023
From a technical standpoint, a Litecoin value bounce from its long-standing ascending trendline help might prolong towards its multi-month descending trendline resistance, as proven under.
In consequence, LTC value can attain $78.50 as its subsequent upside goal within the coming weeks, up round 16.5% from present value ranges. The $78.50-level has served as help 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 shifting common (50-week EMA; the pink wave within the chart above).
This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer entails threat, and readers ought to conduct their very own analysis when making a call.