Litecoin price slips as traders await double central-bank whammy
|- Litecoin price action slips lower after an initial 75 bps rate hike and statement from the ECB.
- LTC price sees no turnaround and uplift on the back of the decision.
- Expect to see dollar strength come in and pull LTC price down as both Powell and Lagarde are set to speak at the same time at different events.
Litecoin (LTC) price is printing losses of over -1% after the ECB rate hike and its economic forecasts for the last quarter of 2022. Whilst these sorts of statements and forecasts are less relevant for cryptocurrencies, this one was more crucial than ever as it shed light on where the strong dollar will be going. As it is looking like the ECB is dropping the ball again this year with overoptimistic and unrealistic forecasts, the euro looks set to get hammered as the dollar gets stronger over the coming months.
LTC price set to slip below $50
Litecoin price saw traders holding their breath for the big catalyst event of the week: the ECB rate decision and its forward guidance. Let us stop there, however, as the statement mentioned, the ECB will be data-dependent now and will not issue any forward guidance. That alone is the same as putting traders in a dark tunnel with a flashlight on and off; it does not paint a pretty and rosy picture in which traders and investors will open up their wallets to invest.
LTC price looks to be biding its time before continuing after Lagarde and Powell are both done speaking. Expect the difference between the two to be quite telling. Where Lagarde and the ECB look likely to defend their positive outlook, Powell and his Fed brethren have a battle plan for better economic numbers to attract investors. Expect LTC price to remain under pressure from a stronger dollar that kicks in after the Powell speech, and will see LTC price drop to $52 first and next $48 with the monthly S1 supporting it for this week.
LTC/USD Daily chart
Should Powell strike a positive note, expect to see some relief from traders with the dollar loosening. That would see a quick pull in LTC prices with a break above the 55-day Simple Moving Average and quickly printing $60 in its value. Expect $65.08 not to be tested today, but keep an eye on market action on Friday as that level could get tested next week if positive sentiment continues.
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