- Summary:
- The Litecoin price has been one of the best-performing projects following the collapse of the FTX, which saw all other projects become bearish
The Litecoin price has been one of the best-performing projects following the collapse of the FTX, which saw almost all other cryptocurrencies entering a long-term bearish trend. In November, for instance, Litecoin’s price went up by 43% and mostly traded against a bearish trend in the cryptocurrency industry.
The Litecoin price is recovering for several reasons. Firstly, the overall cryptocurrency industry is experiencing a recovery following the FTX collapse, and Litecoin is trading in tandem with this trend. Secondly, the outflow of Bitcoin from exchanges has left Litecoin with no serious competitors in these exchanges, which many investors see as a positive. The outflows follow the fall of FTX and revelations that their users’ deposits were redirected without consent. Therefore, many cryptocurrency holders are transferring their Bitcoin assets into cold storage, which they consider safer than exchanges.
Additionally, fundamental signals indicate that Litecoin has recovered to its pre-FTX collapse levels. One factor that has driven the current price surge has been an increase in mining difficulty, which is set to hit new highs. This is typically a positive indicator for a sustained long-term bullish trend, which will be beneficial for Litecoin’s future.
Litecoin Price Forecast
On the technical side of things, the current price action seems to confirm that we might continue to see the current bullish trend continue for the next few trading sessions. This is despite today’s bearish trend that has seen the crypto dropping by more than 3% in the early hours of today’s trading session.
Therefore, I expect Litecoin to have hit the $100 price level by the end of the year. There is a high likelihood that the current bullish trend may even push past next year. It is also highly likely that Litecoin will start seeing an aggressive push to the upside as a result of a recovering cryptocurrency industry. However, a drop below the $70 price level will invalidate my bullish analysis.
Litecoin Daily Chart
