In recent months, the price of Litecoin (LTC) has garnered interest among investors despite overall bearish trends in the cryptocurrency market. This article examines Litecoin's price dynamics in May and potential scenarios for June.
Drivers of Litecoin's Price in May
In mid-May, Litecoin attempted to overcome a multi-month downtrend but was rejected at $102. Increased interest stemmed from the announcement of the LitVM token launch and discussions about a potential ETF for Litecoin. However, weak trading volume and bearish structure pulled the price back to $82. LitVM introduced smart contracts to the Litecoin ecosystem for the first time, utilizing zk-rollups and EVM compatibility, opening new opportunities for DeFi on Litecoin. Nonetheless, the market did not fully react to this event, possibly overshadowed by overall decline in the crypto industry.
Factors Influencing Price in June
A decision on the Litecoin ETF, expected in August, may attract attention in June. Speculation around a 90% chance of approval could lead to increased trading volumes. Another factor is the adoption of LitVM. If developers start deploying dApps and cross-chain integrations, Litecoin could experience a new wave of demand. However, without real usage, the upgrade may not significantly impact the price.
Predictions and Technical Indicators
Current technical indicators show weak buying pressure and ongoing selling momentum. If market sentiment remains low and no new bullish catalysts emerge, LTC could fall below $82 to the range of $72-75. However, if LTC can stabilize and avoid a downward breakdown, it may oscillate between $88 and $110. If Litecoin breaks the descending trendline and trading volume increases, it could rally to $120 or even $160.
Litecoin displayed strong development in May, but price action remained bearish. In June, traders will be looking for a breakout above $95-$100 to confirm a reversal. Technical signals remain cautious.
