The Litecoin price has been on a rally for the last three weeks. It is trading 4.55% higher at $172.90. Its total market capitalization stands at $11.55 billion. It ranks as the 15th largest cryptocurrency sandwiching it between Bitcoin Cash and Internet Computer.
Litecoin was created by Charlie Lee in 2011. The coin was designed for everyday transactions, making its transactions faster and cheaper than Bitcoin. It was the first coin to adopt the lightning network.
Litecoin has a close correlation to Bitcoin. According to its creator, Charlie Lee, Litecoin was created to be a better version of Bitcoin. Hence, Bitcoin’s performance affects LTC’s price. Analysts linked Bitcoin’s price rally to the decline in inflation and US Treasury yields.
While the resurgence of coronavirus infections along with the Delta variant is a disadvantage to most assets, it is a good thing for cryptocurrencies. As such, the Federal Reserve is expected to maintain its monetary policies until inflation is stable and on the rally.
However, the Senate’s $1 trillion infrastructure bill has had investors in jitters. The Senate proposed a crackdown on crypto tax reporting to help boost the revenue. According to the Senate, the increase in crypto tax reporting will bring in nearly $28 billion by the end of the decade.
The coin’s price rallied after receiving support from some members of the Senate. A group of senators introduced an amendment that excludes miners and developers. The legislation received support from the crypto community, despite being rejected by the Senate.
LTC’s Technical Analysis
On the daily chart, the Litecoin price has been consolidating within a horizontal channel before breaking out. Along the way, it has formed what looks like a double bottom. The coin has been trading above the key resistance level at $150 for the past five days.
It is trading above the 100 and 200-day moving averages indicating a bullish trend. Its Relative Strength Index (RSI) is strong. However, its RSI currently stands at 72 which is past overbought.
The Litecoin price is likely to maintain its bullish momentum as the bulls target the key resistance level at $200. However, a move past the support at $150 will invalidate the bullish outlook.