The Litecoin price is consolidating around the $190 level. At the time of writing, the digital currency was up 2.15% at $189.86. Its total market capitalization currently stands at $12.7 billion, ranking as the 14th largest cryptocurrency. Its total volume traded in the last 24 hours was up 5.56% at $2.07 billion.
The LTC price was in the green earlier on Monday ahead of the Federal Reserve’s annual Jackson Hole Wyo. symposium later in the week.
Investors have shifted their focus to the meeting, hoping to get clues on when the Fed plans to scale down its asset purchases. Hints at tapering its asset purchases sooner than expected, maybe a bearish catalyst for riskier assets like digital currencies.
Just like most cryptocurrencies, Bitcoin and Litecoin have a close correlation. Bitcoin has jumped almost 70% in the past four weeks, surpassing the critical level at $50,000 for the first time since mid-May. Bitcoin’s total market capitalization has edged higher to $946.8 billion. Therefore, the Litecoin price is likely to dart higher as investors absorb Bitcoin’s strong performance.
Analysts have also linked the rise in the LTC price to the overall weak US dollar. The US dollar index fell more than 0.35% amid Delta concerns.
The four-hour chart indicates that the Litecoin price has been on an up run for the past five days. The altcoin hit an intraday high at $191.94 before pulling back. Along the way, it has formed what seems like a double top pattern, which usually indicates a bearish outcome.
However, the coin is trading above the 25 and 50-day exponential moving averages, which is a bullish sign. It is also trading above the 100-day moving average, reinforcing its bullish outlook.
Therefore, LTC is likely to continue with its bullish trajectory. However, it is likely to face a major retracement because of the double top pattern. On the flip side, a move below the 100 DMA will invalidate this view.