The Litecoin price has not been left behind by the ongoing sell-off of cryptocurrencies. The LTC is trading at $275, which is 33% below its YTD high. Its market capitalization has dropped to more than $19 billion and is the 12th biggest digital currency in the world. It is sandwiched between Uniswap (UNI) and Chainlink (LINK).
Litecoin as a proxy for BTC
Litecoin is a digital currency that many people use as an alternative to Bitcoin. Its network is not as congested as that of Bitcoin and is usually relatively faster. Therefore, because of their long history, Litecon, Bitcoin Cash, and Bitcoin are often seen as proxies for each other.
As such, the ongoing weakness is because of the overall price action of Bitcoin prices. The BTC has been dropping recently because of fears of high-interest rates, which will lead to higher interest rates, in theory. The decline accelerated today after Elon Musk hinted that Tesla could sell its BTC holdings. He later clarified that the company had not yet sold its holdings. So, what next for LTC prices?
Litecoin price prediction
The daily chart shows that something unique has happened on LTC prices. We see that the price has been in an overall bullish trend. Along the way, it formed an ascending channel pattern that is shown in black. The ongoing weakness is partly because of profit-taking after the currency tested that resistance level. Another notable thing is that the Litecoin price is trading at the 50-day exponential moving average. Another 15% drop will see it retesting the 100-day EMA.
Therefore, in my view, the outlook for LTC price is neutral. There is a possibility that it will have a relief rally that will see it move higher than the 50-day EMA. Another scenario is where the currency drops to the lower side of the channel at $220, which is 20% below the current level.