The Litecoin price is holding steady close to its December 2017 high as demand for the digital currency continued rising. LTC has jumped by more than 5% in the past 24 hours and by 35% in the past 7 days. It is now the 10th biggest digital currency.
What happened: Litecoin and other select altcoins have jumped recently as demand rises. The recent comments by the Federal Reserve that it won’t raise interest rates has brought more interest into altcoins. However, today will be an important day for Litecoin and other cryptocurrencies since the US will publish the latest non-farm payrolls numbers.
If the numbers beat the analysts forecasts by far, we could see a major sell-off in the crypto industry. That is because it will put more pressure on the Federal Reserve to do some tightening. In fact, earlier this week, Janet Yellen, the former Fed chair said that the bank will likely tighten to prevent the economy from overheating.
Like I wrote yesterday, Bitcoin and other currencies could sell-off if the Fed embraces a tightening monetary policy.
On the daily chart, we see that the LTC price has formed an ascending channel. The price is close to the upper side of the channel, which connects the highest points since January. The upswing is also being supported by then short and longer-term moving averages. It also seems to be forming a cup and handle pattern, whose top side is at $363.
Therefore, overall, the bullish trend will likely preview so long as the price is above the two moving averages. If this happens, I can’t rule out a situation where the currency surges to the next resistance at $400. On the flip side, there is also a possibility that the pair will retreat as bears attempt to test the lower side of this channel.
Please don’t consider this investment advice. Views expressed here are those of the writer and the writer and InvestingCube will not be held liable for any losses.
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