Litecoin price is down by 5 percent this week, extending the monthly bearish trend that has seen its value drop by 16 percent. As the year comes to an end, Litecoin’s price is looking likely to extend the bearish trend, which has seen its value drop by over 50 percent year-to-date.
Litecoin Price Prediction for 2023
There have been a number of reasons why we have seen Litecoin price dropping by over 50 percent in 2022, among them the current industry-wide bearish trend. Litecoin, being significantly correlated with the crypto industry and major coins such as Bitcoin, has seen its value getting dragged down due o macroeconomic factors, such as worsening market conditions, that have impacted the entire industry,
Events such as the mid-May collapse of UST and Terra Luna and the November collapse of the FTX crypto exchange also played a significant role in Litecoin’s drop in value. These events resulted in the entire industry going into an aggressive bearish trend,
Today, as the year comes to an end, all these factors continue to affect Litecoin price and will play a significant role in whether Litecoin price starts to recover in 2023. For the first few weeks, and possibly months, there is a high likelihood that we might continue to see Litecoin price continue dropping in the markets for the foreseeable future.
Overall, for the first few months of 2023, I do not expect any significant price movement to the upside. Based on current price action, current fundamental analysis, and the industry-wide bearish trend, I expect Litecoin to trade below the $100 price level for the first quarter of the year.
Should you Invest in Litecoin?
For long-term cryptocurrency holders, there is a high likelihood that, in the long-term, Litecoin will recover. However, short-term investors looking to buy Litecoin may be struck in the current bearish trend that has seen its value dropping by over 50 percent year-to-date.
The past few weeks have also seen Litecoin trading sideways. Therefore, it is highly likely that we might see the sideways trend continue for the next few weeks. Overall, investing in Litecoin for the next few weeks will come with high risks.