- Litecoin price pulled back after it hit an important resistance level.
- Litecoin and Bitcoin's hash rate has surged hard recently.
Litecoin price pulled back on Wednesday as the recent rebound took a breather. LTC dropped to a low of $53, which was lower than this month’s high of $55.72. This price is about 8.15% above the lowest level in September.
Litecoin and Bitcoin hash rates rise
Litecoin is one of the biggest alternatives to Bitcoin. It was created to solve some of the challenges that Bitcoin had. For example, instead of having a supply limit of 21 million, Litecoin had much more than that.
As a result, for real users, Litecoin tends to be much faster and have significantly lower transaction costs than BTC. Still, like other cryptocurrencies, Litecoin is mostly held by investors and speculators who hope to benefit as its price rises.
Litecoin’s recent price action has mirrored that of Bitcoin. It has remained stagnant at around $50 just as BTC has remained at $20,000. This price action happened even as Global stocks and bonds slumped while the US dollar index soared to a multi-decade high.
Find out how to buy Litecoin.
While LTC price has gone nowhere in the past few days, its mining hash rate has actually risen. Data shows that the coin has a hash rate of 487.68 TH/s, which is much higher than last month’s low of 415 TH/s.
The same is happening in Bitcoin, where its hash rate surged to an all-time high of 242 Exahash per second. This increasing hash rate is probably because of the rising competition in the industry after the recent Ethereum Merge.
Another possible explanation is that miners are introducing more efficient mining hardware. At the same time, Litecoin’s mining difficulty has been rising even as profitability falls due to low Litecoin prices.
Litecoin’s price action is also a reflection that many investors believe that the Federal Reserve wil start to pivot. As such, the upcoming non-farm payrolls (NFP) data that will come out on Friday.
Litecoin price prediction
The four-hour chart shows that the LTC price pulled back slightly on Wednesday after it hit the important resistance level at $55.95. This was an important level since it struggled to rise above it in September. The coin fell back to the 25-day and 50-day moving averages while the Relative Strength Index (RSI) pulled back.
Therefore, at this stage, the outlook of Litecoin is neutral at this stage. Further gains will be confirmed if it manages to move above the important resistance level at $55.95. A drop below the support at $51.57 will invalidate the bullish view.
