Litecoin price outlook: Potential downward breakout amid hash rate and mining difficulty decline
Overview
- Litecoin (LTC) price faces significant downside risk as hash rate and mining difficulty drop to monthly lows.
- Canary Capital's LTC ETF application may bring some optimism, though it's uncertain if it can push LTC to ambitious levels like $2,900.
Key Details
- LTC Price Performance: On November 5, LTC saw a slight uptick of 1.5%, reaching an intraday high of $67.20. The cryptocurrency remains under correction, down 12% from its October high.
- Hash Rate Decline: Litecoin’s hash rate fell to 1.1048 PH/s, the lowest since October 7, marking a sharp decline from October’s peak of 1.3667 PH/s. Hash rate is a critical security metric for proof-of-work cryptocurrencies.
- Mining Difficulty: Mining difficulty also fell to 41.93 on November 5, its lowest level since October 11, signaling potential challenges for miners and overall network security.
Political Context
- Price Levels and Technical Analysis: LTC currently sits above a key support level along an ascending trendline, having tested and bounced off this line multiple times since August. It also holds above the 23.6% Fibonacci retracement level at $65.05.
- Downside Risks: A breakdown below this trendline could lead LTC to revisit the August low of $50.44, a potential 24.3% drop from current levels. Conversely, if LTC price breaks above the double-top resistance at $74.30, it may rally toward the 50% retracement level, approximately 22.1% higher.
Litecoin remains in a cautious position with bearish pressures, though it holds a path to recovery if it can reclaim key resistance levels.
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