Should you buy Litecoin as its hash rate rebounds?
Litecoin price remained in a consolidation phase on Monday as investors reflected on the happenings in the crypto industry. LTC was trading at $57.30, which was about 20.7% above the lowest level this year. This price was about 21% below the highest level this month. So, is it safe to buy Litecoin now?
Is LTC a good investment?
Litecoin, like other cryptocurrencies, has been in a strong bearish trend in the past few days as concerns about the sector continued. The biggest risk is the collapse of FTX, the second-biggest crypto exchange in the world after Binance.
As such, investors fear that a contagion risk could occur increase. Therefore, the number of crypto withdrawals from exchanges has continued rising in the past few days. At the same time, Bitcoin’s fear and greed slumped to the lowest level in months.
Historically, cryptocurrencies like Litecoin and Bitcoin tend to crash hard after a major seismic event like FTX’s crash. Most of them dropped like a rock after the collapse of Voyager Digital and Terra’s ecosystem in May this year. The only difference is the magnitude of FTX’s clash and the role it has in the economy.
Meanwhile, on-chain data shows that Litecoin’s hash rate has crawled back after falling sharply last week. It has risen to a high of 542 TH/s, which was higher than last Friday’s low of 507 TH/s.
A hash rate is defined as the measure of computational power on a blockchain network. It is determined by the number of guesses made per second. The hashrate helps to determine the security and mining difficulty of a blockchain’s network.
Litecoin’s hash rate is now slightly below its all-time high of about 575 TH/S. This could be a sign that the network has some activity.
Litecoin price forecast
The four-hour chart shows that the LTC price has been in a strong bearish trend in the past few days. It has moved slightly above the important support level at $55.75. The coin remains slightly below the 25-day moving averages. At the same time, the Stochastic Oscillator has moved above the neutral point.
Litecoin has also formed a hammer pattern, which is usually a bullish view. Therefore, the coin will likely continue rising as buyers target the key resistance level at $63. A drop below the support at $55.7 will invalidate the bullish view.
How to buy Litecoin
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