Litecoin, one of the popular cryptocurrencies in the market, has been struggling to maintain its bullish momentum in recent days. The digital asset formed a triple-top pattern on the daily chart, which means that sellers could continue pushing the price down. The crypto market has been under intense pressure due to the recent lawsuits filed by the US Securities and Exchange Commission (SEC) against Coinbase and Binance.
The lawsuits alleged that the companies provided unregulated securities in the US, and the case could last for several years. The most likely outcome, according to some analysts, could be a settlement between the SEC and the two companies. If Coinbase or Binance loses, it could lead to major implications for the entire crypto industry. This is because Coinbase could be forced to delist thousands of cryptocurrencies, while popular coins like Bitcoin and Litecoin could remain safe as they are seen as commodities.
The upcoming Federal Reserve interest rate decision is another key catalyst that could affect the Litecoin price. Analysts believe that the bank will leave the interest rates unchanged, which could be a positive thing for the financial market and Litecoin. A pause in interest rate hikes will be a welcome relief for investors who have seen the Fed hike rates repeatedly.
The decision will come a day after the US publishes its consumer price index (CPI) data. Analysts predict that the headline CPI will drop to 4.1% in May from the previous 4.9% level. A lower-than-expected CPI could lift the Litecoin price higher, while a higher-than-expected reading could cause a sell-off in the financial market.
Turning to the daily chart, the LTC price formed a triple-top pattern at $105.70, where it struggled moving above this year. The coin has moved below the 50-day and 100-day moving averages, and the RSI has moved below the neutral point at 30. This suggests that the LTC price could continue to drop further, with the next key support at $65.60. A move below this level could see the coin drop to $60.
In summary, Litecoin is facing tough times amidst the ongoing lawsuits against Coinbase and Binance. The outcome of these cases could have significant implications for the entire crypto industry. The Federal Reserve interest rate decision and the US CPI data could also affect the Litecoin price. Investors should keep a close eye on these events to determine their trading strategies.
