Altcoins
Litecoin Price Smoked Even as Hashrate Jumps
Litecoin price has been in a strong bearish trend in the past few days as demand for cryptocurrencies plunged. LTC plunged to a low of $61.30, which was the lowest level since November 22. It has plunged by more than 24% from the highest level this month.
Fear and greed index
Crypto investors are getting significantly fearful in the past few weeks. There are two main concerns in the market. First, there are concerns that the Federal Reserve will push the American economy to a recession because of its hawkish tone. In its meeting last week, the Fed decided to hike interest rates by 0.50% and hinted that the terminal rate will rise to 5.1%.
Extremely high-interest rates could lead to a recession or stagflation. Stagflation happens when a high-interest rate environment coincides with a period of slow growth. America’s inflation stands at 7.3%, which is above the Fed’s target of 2.0%. As such, investors believe that cryptocurrencies like Litecoin will struggle in a period of a recession.
However, there are some signs that the American economy will have a soft landing. Gasoline prices have dropped while shipping costs have continued retreating in the past few months. Also, there are clear signs that inflation has already peaked.
Second, Litecoin price has dropped because of the ongoing fear about the crypto market as outflows continue. Binance, the biggest exchange in the world, has lost more than $10 billion in assets in the past 30 days. This trend happened as investors remain concerned about the safety of exchanges.
On a positive side, the safety of Litecoin’s network has continued to improve. The network’s hashrate has risen to 625 TH/s, which is close to its all-time high.
Litecoin price prediction
The daily chart shows that the LTC price has pulled back as it lost its momentum. It has moved below the 50-day and 25-day moving averages while the Relative Strength Index (RSI) has moved close to the oversold level.
Therefore, with no Santa Rally in sight, the path of the least resistance for Litecoin is lower. If this happens, the next key level to watch will be at $47.85, which was the lowest level on November 9. A move above the resistance at $73.50 will invalidate the bearish view.
Dogecoin price has been range-bound for the past few days as investors weigh up the recent banking crisis on fears that the global economy may be headed into a recession. The meme coin has jumped by more than 3% in the past week and gained 7% in its year-to-date price. Dogecoin ranks as the 8th largest cryptocurrency by market cap after Cardano and before Polygon.
Fundamentals
Dogecoin price was trading in the red on Friday, wiping its gains from Thursday’s trading session. The coin has been under pressure for the past month as many investors seem to be backing out of their investments in the altcoin. Elon Musk, CEO of SpaceX and Tesla recently showed a loss of enthusiasm for the meme-inspired cryptocurrency as he expressed his new interest in AI.
Elon Musk’s tweets have always had a substantial impact on the Dogecoin price. Earlier this month, Musk took to his Twitter to announce that he had lost his interest in crypto and gained a newfound interest in AI. His remarks saw the DOGE price dip by nearly 5%, contributing to the significant decline in the coin’s price this month.
The global crypto market has been holding steady above the crucial $1 trillion level for the past few days. At press time, it was at $1.16 trillion, a 0.31% decrease over the last day. The total crypto market volume slipped by 13.78%. More specifically,…
Ethereum price has been hovering around its highest level in 7 months for the past few days amid a boost in the crypto market. ETH has jumped more than 49% in its year-to-date price, increasing 5% in the past week. Ethereum’s total market cap has slipped by more than 3% over the last day, while the total volume of the altcoin traded increased by more than 6%.
Fundamentals
Just like most cryptocurrencies, Ethereum price found support in the recent fiasco in the banking sector. The recent vulnerability in the banking sector pumped liquidity in the global crypto market as investors shifted to other assets such as cryptocurrencies. Bitcoin, the largest cryptocurrency by market cap, saw its price hit its highest level in 9 months, while Ethereum jumped to a 7-month high.
The global crypto market was in the red later on Wednesday as investors chewed on the Fed’s latest interest rate decision. The Federal Open Market Committee (FOMC) announced on Wednesday a 25-basis point hike in the federal funds to 5%, down from 4.75%.
According to a statement by the US Federal Reserve, the FOMC remains highly attentive to inflation risks as it seeks to achieve an inflation rate of 2%in the long run. The Committee also announced that it anticipates additional policy firming to help in attaining a stance of monetary policy to aid in achieving the 2% target.
According to the Fed’s…
Solana price joined in on the recent rally in the global cryptocurrency market, jumping nearly 17% in the past week. Solana has made substantial gains this year, climbing 102% in its year-to-date price. SOL ranks as the 11th largest cryptocurrency after Binance USD and ahead of Polkadot. Despite the altcoin’s recent rally, the total volume of the coin traded has continued to dwindle.
Fundamentals
Solana price was trading slightly higher on Friday as Bitcoin and other altcoins extended their rally despite the bank contagion fears weighing on the markets. Bitcoin and Ethereum have been leading the recent rally in the market, jumping more than 30% and 20% in the past week, respectively.
Investors have welcomed the resilient crypto prices amid the recent crisis in the banking sector this week. The week started with the collapse of Signature Bank and Silicon Valley Bank on Sunday until the focus shifted to Credit Suisse and First Republic Bank. Traders have been digesting the fate of Credit Suisse even after the bank said that it would borrow up to 50 billion Swiss Francs from the Swiss National Bank.
Several analysts have linked the recent rally in the crypto market to lingering bank worries. Even so, crypto prices are heavily influenced by inflation and the Federal Reserve interest rate hikes. According to analysts, the recent decline in banking stocks points to the vulnerability of traditional institutions, raising liquidity concerns…
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