Litecoin price has been in a tight range in the past few days as the market participants waited for the next catalyst. LTC has risen in the past two straight days and is trading at $54.76, where it has been in the past few days. It remains about 19.3% below the highest level in September.
Litecoin consolidation continues
Litecoin had a mild performance in September even as market conditions remained volatile. In September, American stocks crashed by more than 10%, with indices like the Dow Jones, Nasdaq 100, and S&P 500 retreating.
At the same time, the US dollar index (DXY) surged to the highest level in more than 20 years. Other key indices signaled at potential risks in the market. For example, the closely watched VIX index, which is a measure of volatility, soared to more than $32 while the fear and greed index dropped to the fear zone.
All these numbers signal that Litecoin did well in a difficult market. The same is true for other cryptocurrencies like Bitcoin and Ethereum.
The main catalyst for Litecoin in September was Ethereum Merge, which transitioned it from a proof-of-work (PoW) to a proof-of-stake (PoS). Since this was the biggest event in the blockchain industry, most cryptocurrencies reacted to it.
Looking forward, there will be no major cryptocurrency-focused event of the magnitude of the Merge in October. Therefore, investors will continue to focus on the broader market issues like inflation and monetary policy.
This week, the US will publish the latest jobs numbers. Analysts expect the data to show that the country’s economy added more than 300k jobs in September. As such, with inflation at an elevated level, there is a likelihood that the Fed will continue hiking interest rates.
Litecoin price prediction
The daily chart shows that the LTC price has been in a consolidation phase in the past few days. It has remained between the important support and resistance levels at $46.3 and $67.35. The coin is still hovering at the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved to the neutral point at 50.
Therefore, there is a likelihood that Litecoin will remain in this tight range in October. A move above the resistance at $67 will mean that there are more buyers left while a drop below the support at $46 will mean that there are more sellers in the market.