Litecoin Price Under Pressure as Coinbase and Binance Face SEC Lawsuits; Federal Reserve's Interest Rate Decision Awaited
Litecoin has formed a triple-top pattern on the daily chart. Meanwhile, the main news is the recent lawsuits against Coinbase and Binance by the SEC. Additionally, the Federal Reserve's next interest rate decision is impending.
The price of Litecoin has come under significant pressure in recent days as investors focus on the recent lawsuits filed by the SEC against Coinbase and Binance. The LTC token fell to a low of $73.98, dipping below the previous year's high of $105.70.
Litecoin, along with other cryptocurrencies, is undergoing a difficult phase as investors concentrate on the SEC's lawsuit from last week. In the lawsuits, the SEC claimed that the crypto companies provided unregulated securities in the United States. As we reported here earlier, the agency also sued the CEO of Binance, Changpeng Zhao.
It is still too early to predict the outcome of these lawsuits. As we saw in the ongoing SEC vs. Ripple case, the process could take several years. The most probable outcome would be a settlement between Binance or Coinbase and the SEC. Alternatively, the two companies could lose the lawsuits, which would have significant repercussions on the crypto industry.
If Coinbase loses, for instance, the company would be forced to take thousands of cryptocurrencies off the exchange. Popular coins such as Bitcoin and Litecoin should be safe as they are considered commodities.
The next key catalyst for the LTC price will be the Federal Reserve's upcoming interest rate decision, scheduled for Wednesday. Analysts predict that the bank will retain the interest rates unchanged at 5% to 5.25%.
A pause in interest-rate hikes will positively impact Litecoin, stocks, and other financial assets. Primarily, this will be the first time the Fed has not raised interest rates in ten meetings.
The decision will come a day after the release of consumer price index (CPI) data in the United States. Analysts predict that the overall CPI in May declined from 4.9% earlier to 4.1%.
Litecoin Price Prediction
Looking at the daily chart, we can see that the LTC price has formed a triple-top pattern at $105.70, where it struggled to climb above this year. The neckline of this pattern is around $65.60. The coin has moved below the 50-day and 100-day moving averages.
The relative strength index (RSI) has fallen below the neutral 30 levels. Therefore, I suspect that the LTC price will continue to fall as sellers target the critical support at $65.60. A move below this level opens the possibility of the coin falling to $60.
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