- The LTC prices took a step back after the central bank announced to increase the interest rates by 50 base points.
- The volume increases by more than half times.
- PayPal expands crypto services to Luxembourg.
The central bank announced an increase in the interest rates by 50 base points, which may shrink the liquidity and reduce the market’s purchasing power. This will affect the crypto verse inevitably. Reflection of the decision is evident in the price performances of the crypto token. But since Litcoin already underwent a bullish breakout, the effects of this inflation control policy could be minimized. Also, before the official announcement and implementation of these rates, new users are entering the Litecoin ecosystem, all thanks to the expansion by PayPal for providing crypto services in Luxembourg. New users are a bonus as they will further minimize the impact of this new fiscal policy.
The chart session
The LTC consistently moved up, forming higher highs supported by the golden cross (red circle), which resulted in the breakout. It now forms a bullish flag leaving all crucial EMAs behind and aiming to surge to $95. The expected price rally could be a step closer to nullifying the damage caused by the recent tragedy. The volume and OBV form a bullish divergence which supports the prediction of a price surge.
The bullish flag sends the price closer to the resistance ranges. The CMF indicator drops due to the rise in interest rates but still manages to find a spot in the positive action zone. The MACD indicator diverges as the coin faces some sellers but may soon turn attractive for buyers again. The lines function far above the zero mark, showing active participation by both parties. The RSI indicator also oscillates in the higher ranges but moves closer to the half line.
The closer POV
In the 4-hour time frame, the price is seen moving horizontally, subtly escalating upwards. The fallen CMF indicator is seen retracing upwards. The MACD indicator tangled and went neutral as new entrants will gradually raid the market. The RSI indicator also rises from the lower ranges, indicating depleting seller control. This situation may amplify as the users from Luxembourg will enter the market.
Conclusion
The market may be down today, but it will be back again with more bling, and the price rise would reflect the satisfied users and active participation amidst the inflationary fiscal policies by the central bank. The users are highly invested in LTC, post-crash, as it outperformed all altcoins and took higher spots in the market capture. The users are optimistic about the LTC price for the near term, as it has already taken the lead in the game.
Technical levels
Support levels: $51.15 and $41.70
Resistance levels: $95.80 and $107.10
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2022/12/12/litecoins-defense-for-the-new-inflationary-policy-ltc-price-reacts-accordingly/