LTC price rose by 1.5% on November 5, reaching an intraday high of $67.20. Litecoin remains in a correction after falling by 12% from its highest level in October. Its downtrend may continue as the hash rate drops to its lowest level in almost a month.
LTC Price Pressured As Hash Rate Slips
Litecoin, the 24th biggest cryptocurrency, has seen its hash rate drop sharply in the past few days. According to CoinWarz, the rate retreated to 1.1048 PH/s, its lowest point since October 7, and much lower than last month’s high of 1.3667 PH/s.
LTC’s hash rate has coincided with the drop in its mining difficulty, which dropped to 41.93, its lowest level since October 11, and much lower than October’s high of near 45 million.
A hash rate is an important number in proof-of-work cryptocurrencies that looks at the computational power used in mining. A higher hash rate is a sign that a cryptocurrency is more secure.
A likely reason for this falling hash rate is that LTC price has not performed well in the past few months. It remains down by 40.6% from the year-to-date high, while Bitcoin is just 6.50% lower than its all-time high.
Litecoin Hashrate
Litecoin Price Analysis As It Sits On A Key Support
LTC price bottomed at $50.44 in August, when the wounding of the Japanese yen carry trade led to a crash across stocks and cryptocurrencies. It then bounced back to $76.10, where it formed a small double-top pattern whose neckline was at $66.85. A double-top is a popular reversal pattern.
Litecoin token has also dropped below the 50-day and 200-day Exponential Moving Averages (EMA), a sign that bears are in control for now.
Fortunately, it has settled at the ascending trendline, which is made by the lower high levels since August 27. It has bounced back above that level at least five times in this period. Also, LTC price sits above the 23.6% Fibonacci Retracement point at $65.05.
Therefore, there is a risk that Litecoin price will have a severe breakdown if it loses this ascending trendline. If this happens, it could drop to the August low of $50.44, which is 24.3% below the current level.
This LTC price prediction will become invalid if the value of Litecoin rises above the double-top level of $74.30. If this happens, it could rise to the 50% retracement level, which is 22.1% above the current level.
Litecoin chart by TradingView
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