- Litecoin price was in a tight range on Monday morning.
- The US dollar index continued its upward trend and is sitting at over $105.
- The price of Brent crude oil has soared to $93.25.
Litecoin price moved sideways during the weekend as last week’s rebound lost momentum. After rising to $66.75 on Friday, the LTC coin was trading at $64.40 on Monday morning. It has risen by more than 11% from the lowest level this month.
Investors are still fearful
Litecoin price has wavered recently as investors remain fearful about the market and as demand for cryptocurrencies fall. The closely-watched crypto fear and greed index has moved to the fear zone of 46.
This index looks at several important measures in the crypto industry like volatility, market momentum, social media mentions, dominance, and trends. It has remained in the fear area in the past few weeks.
In most periods, Litecoin and other cryptocurrencies tend to underperform when the fear and greed index is in the fear area and vice versa.
There are several key causes of this fear. First, generally, demand for cryptocurrencies has dropped, as evidenced by the low volume in the industry. Most exchanges are seeing substantially low volumes as the crypto winter continues.
Second, the price of crude oil has jumped sharply in the past few months. Brent has risen to $93 while West Texas Intermediate (WTI) has remained comfortably above $90 a barrel.
Higher oil prices lead to higher inflation, which leads to more rate hikes by the Federal Reserve. Data published last week showed that the US consumer inflation jumped to 3.7% in August as gasoline prices jumped.
Third, Litecoin price has wavered as the US dollar index (DXY) jumps. The index has soared to over $105 because of the rising interest rates. In most periods, Litecoin has an inverse relationship with the US dollar. The UAW strike is also having an impact on Litecoin.
The key event to watch this week will be the upcoming Federal Reserve decision on Wednesday. Analysts expect the bank to deliver a hawkish pause.
Litecoin price prediction
LTC price bounced back last week as Bitcoin bounced back to over $26,000 after falling below $24,000 on Monday. On the daily chart, LTC has remained below the important resistance level at $71.12, the lowest point on June 14th. It has remained below the 25-day and 50-day moving averages.
Litecoin’s volume has moved in a downward trend. Therefore, the outlook for the coin is still bearish, with the next level to watch being $57.53, the lowest level on 11th September.
