Litecoin (LTC) price was catching up with the global crypto rally but got stalled by Bitcoin’s flash crash on Monday. However, after a 5.84% drop in the first trading data of the week, LTC price is showing a 0.72% recovery on Tuesday. This recovery comes as the markets brace themselves for the US CPI data release which is scheduled later today.
The LTC/USD chart shows that the altcoin pair failed to find strength above its 200-daily moving average and reversed after hitting almost its 4-month high of $79.53. The key moving average currently lies at $76.27, which is well above the current price of $73.21.
On Tuesday, Bitcoin price is hovering around $41,800 at press time. Many altcoins are outperforming Bitcoin as the Total 3 market capitalization increased by 1.8%. However, the volatility is expected to increase in the second half of the day as the markets await the US CPI data for November 2023.
According to on-chain data, there has been a significant decrease in the number of Litecoin holders in the past two weeks. During this time, almost 200,000 wallets which were once active, have been emptied. This suggests that these holders have sold LTC for more lucrative opportunities in the crypto space.
It is not that difficult to understand the LTC price chart as you can clearly see a macro trading range. After confirming the breakout above the range lows in November, the price retested the 200 MA. Even though this retest resulted in a rejection but there is still a strong possibility of a move towards the range-mids which lies around $86.
The invalidation of this move would be a breakdown below the range lows of $66 which are clearly mentioned in the following chart. However, this week’s FOMC decision, along with the upcoming CPI report will be very critical for the overall market sentiment.
This post was last modified on Dec 12, 2023, 08:28 GMT 08:28