Litecoin price went parabolic on Wednesday as investors waited for the upcoming Fed decision. LTC jumped to a high of $62.56, which was the highest level since September 13. It has jumped by more than 29% from its lowest level this year.
Fed interest rate hike ahead
LTC price made a strong recovery even as other cryptocurrencies and stocks recoiled. Bitcoin remained in a tight range at $20,000 while the Dow Jones, S&P 500, and the Nasdaq 100 indices slipped by more than 0.50%.
The main game in town is the upcoming interest rate decision by the Federal Reserve. Investors have mixed opinions on what the bank will do. The consensus is that the Fed will hike interest rates by 0.75% as it has done in the past three meetings straight.
As such, the headline decision will not have a major impact on Litecoin and other financial assets. Instead, the main catalyst will be the forward guidance from officials. Some analysts expect that the bank will signal that it will continue hiking rates in the coming months.
On the other hand, some analysts, such as those from JP Morgan expect the bank to start pivoting. If this happens, it will likely push Litecoin prices higher. On the other hand, if the Fed maintains its hawkish stance, there is a likelihood that coins will resume the bearish trend.
Litecoin price rose as Ethereum’s hash rate staged a strong recovery. After falling to a low of 440 TH/s on October 30th, it has risen to 525 TH/s. A higher hash rate is a sign that a network is healthy and that there is more on-chain activity. Litecoin also rose as its volume traded in CEX and DEX exchanges rose.
Litecoin price prediction
So, should you buy Litecoin? The four-hour chart shows that the LTC price has made a spectacular comeback in the past few hours. As it rose, it invalidated the double-top pattern at $57.55. It also jumped above all moving averages while the Relative Strength Index (RSI) has jumped to the overbought level. The coin has also formed an inverted head and shoulders pattern.
Therefore, there is a likelihood that Litecoin price will keep rising as bulls target the key resistance at $70. A drop below the support at $57 will invalidate the bullish view.
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