Litecoin Price Prediction - Will LTC Recover Back to $100 in 2023?

Join Our Telegram channel to stay up to date on breaking news coverage

Litecoin (LTC) seems to be recovering slowly from its fall since November. As the year filled with bearish market sentiments for crypto assets comes to an end, big cryptos like Litecoin seem to have suffered the worst. Litecoin has lost more than 50% of its value in the past 12 months. With 2023 at their doorsteps, investors are keen to see how the new year unfolds for Litecoin (LTC) and if it will be able to reach its all-time high anytime soon.

Launched in October 2011 by Charlie Lee, Litecoin was developed as an alternative (altcoin) to Bitcoin (BTC). Litecoin came as a decentralized way to make payments at a much higher speed and lower cost than Bitcoin. It is one of the biggest and oldest altcoins in the crypto market. Based on the BTC protocol, Litecoin runs on a Proof-of-work consensus mechanism.

Litecoin Price History

Being in the market for more than ten years, Litecoin had seen an immense spike in its growth and popularity. The coin has crossed the $100, the $200 and the $300 dollar several times during these ten years. The coin witnessed its highest spike (at $349) in December 2017.

November 2021 marked the start of the decline of the overall crypto market. Various cryptocurrencies were reportedly at their all-time highs during or around November 2021. Litecoin, too, was well above the $250 mark during November of last year. The crypto crash of 2021 pushed the market on a long bearish run which was made worse by the LUNA crash in May 2022. The crash pushed Litecoin under the $50 mark.

Litecoin has a long way to go to reach its value at the start of the year. The coin showed signs of recovery as it crossed the $80 resistance level within the first week of December. However, it has further dipped below the $80 support level and is currently under the $70 mark.

The coin has found a new support level of $61.02. After trading as low as $62 in the past couple of days, Litecoin (LTC) is showing signs of recovery as it slowly approaches the $70.50 resistance level.

The Central Bank Week

Cryptocurrencies have also been adversely hit by the sudden hike in the interest rates by the Central Banks of the USA, England and Europe to tackle the growing inflation in the developed economy. Although the policy decision to hike interest rates hit the whole crypto market, big coins like Bitcoin, Ethereum, Litecoin, etc., were the ones affected the most. Crypto assets, although fundamentally different from stocks and securities, have been observed to react the same to different policy measures affecting them.

The Federal Reserve’s Federal Open Market Committee (FOMC) has raised the interest to a record high. Increased interest rates would result in reduced money in the economy (to fight inflation). The decreased supply of money increases the value of the currency as its demand with respect to other goods increases.

In an economy with a cash crunch, investors grow more cautious and tend to invest in less risky and more familiar assets. This affects the crypto market adversely as it is still a novel asset for investment and has not been able to get the recognition of most economies.

The FOMC meeting in December ended up increasing the interest rate levels to a record all-time high (in the last 15 years) by hiking it by 50 base points. The Bank of England also increased the interest rates by 50 base points to bring the interest rate to 4.25-4.5%.

These policy measures had a role to play in the decline of Litecoin in the past couple of months. The announcement of an increase in interest rates (The Fed on the 7th and Bank of England on the 8th) corresponds with Litecoin’s fall below the $80 support level. LTC slipped all the way down to $75 within a span of 48 hours. With inflation showing no signs of recovery, this would definitely not be the last time the FOMC raises the interest rates for the whole nation.

Litecoin’s Price Prediction Moving Forward

As Litecoin slowly recovers from its December low, its price movement resembles a small bullish run which would soon test the $70.50 resistance level. Litecoin, at the time of writing this article, is trading at $68.88 and has not breached the $70.50 resistance level (as it dropped further after hitting the $70 mark).

If Litecoin persists with its upward movement past the $72 and $75 resistance levels, then it will have a good chance of recovering back to the December 4 levels ($84).

We predict that Litecoin would be closing the year 2022 at around $70 and would cross the $100 mark in 2023.

Unlike a majority of crypto assets that entered the market in 2022, Litecoin does not have a sound project to back the growth of the currency. The only utility Litecoin offers to its users is the ability to make fast transactions to and from different parts of the world. However, for a better growth prospect, Litecoin needs to get into partnerships with other brands and projects and enable its technology to provide services to other platforms.

Litecoin, being one of the biggest cryptocurrencies in the world, is in a better position for technological innovation and fostering partnerships with other brands to fuel its growth. If done right, it will be able to go beyond its previous all-time high and create a new one.

Conclusion

Litecoin started the year 2022 at $155 and has since lost more than half of its value in the past 12 months. Litecoin’s growth in the coming years will also be dependent on the overall growth of the crypto market. The decrease in inflation in the economy could be positive news for investors as it would lead to a lowering of interest rates to earlier levels and would increase investments in crypto assets.

Despite 2022 being a disastrous year for big cryptos like Bitcoin, Ethereum, Litecoin, etc., it also witnessed an influx of new assets that are backed by sound projects and have been able to do tremendously well in their presales. Investing in assets such as Dash 2 Trade, FightOut and others could earn investors huge profits in the long run as the project prospers. However, we suggest doing due diligence before taking the call.