The Litecoin (LTC/USD) price popped in the overnight session as cryptocurrency prices rallied. The LTC coin is trading at $184, which is about 31% above the lowest level in September.
Cryptocurrencies rebound
Litecoin is a peer-to-peer cryptocurrency that works in a similar way to Bitcoin. It is a first-generation currency that was created to provide better services than Bitcoin. This means that it has a faster speed than Bitcoin, which is known for its congestion. It is also a relatively cost-effective cryptocurrency.
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Litecoin and Bitcoin have a close correlation. Data compiled by MacroAxis show that the two coins have a correlation of about 0.90, meaning that their prices tend to follow one another.
Therefore, the Litecoin price is rallying as investors react to the strong Bitcoin rebound. The Bitcoin price jumped above $59,000 for the first time since May this year.
There was no immediate catalyst for the BTC price rebound. But there are several positive factors that have pushed the price higher.
First, there is growing hopes that the Securities and Exchange Commission (SEC) will accept a Bitcoin futures ETF. Some companies, including Cathie Wood’s Ark Capital, have already applied for such a fund. Analysts expect that ETFs will lead to wider adoption by institutional investors.
Second, more companies are embracing the currencies. For example, this week, Stripe announced that it will move back to digital currencies. This is important since Stripe is one of the biggest fintech companies in the world.
Third, the fears about China’s crackdown on cryptocurrencies have waned. Indeed, recent data show that hash rates have grown substantially in the past few weeks.
Litecoin price prediction
The four-hour chart shows that the LTC has landed to a major resistance level. The coin is trading at $185, where it has struggled moving above several times this month. This price is also along the upper side of the ascending triangle pattern. It has also risen above the 25-day and 50-day moving averages while the MACD has moved above the neutral level.
Therefore, the Litecoin price will likely break out higher as bulls target the next key resistance at $200. Moves above $200 will bring the next key resistance at $250 into view.
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