How high can LQTY go?

By xnftcrypto On Mar 14, 2023

[ad_1]

Liquity (LQTY/USD) price has been one of the top performers in the crypto industry as demand for the mid-cap token jumps. It peaked at $3.37, the highest point since March last year. This means that the coin has risen by over 460% from its lowest point this year.

Liquity price steady

Liquity is a small and fast-growing blockchain platform that provides interest-free loans on Ethereum. It does this through its Liquity USD, its stablecoin. Data compiled by CoinMarketCap shows that LUSD has maintained its peg against the US dollar.

It was trading at $1.02 while its total market cap has jumped to over $255 million. It is unclear why Liquity has done well in the past few weeks. A likely reason is a fact that LUSD is one of the top over-collateralized stablecoins.

The next key catalyst for the Liquity price will be the upcoming American inflation numbers scheduled for Tuesday. Economists believe that the data will show that the headline consumer price index (CPI) pulled back to 0.4% while core CPI came in at 0.5%. On a YoY basis, inflation is expected to come in at above 6%.

A higher-than-expected inflation figure will put more pressure on the Federal Reserve to act. Analysts believe that the Fed will hike rates by 0.25% in its meeting next week. Some believe that it will not hike rates while those from Mizuho sees the bank cutting interest rates by 0.25%.

Liquity price is also jumping as Bitcoin and Ethereum prices continue rising. Bitcoin has jumped to $24,800 while Ethereum has soared to $1,692. In all, the total market cap of all cryptocurrencies has risen to over $1.08 trillion. Cryptocurrencies tend to have a close correlation with each other.

Another reason for the LQTY rally is the news that Binance has become one of the biggest holders of the token. Data shows that it owns about 11.5 million LQTY tokens.

Liquity price prediction

LQTY chart by TradingView

The daily chart shows that the LQTY price has been in a strong uptrend in the past few days. It jumped above the key resistance point at $1.81, the highest point on June 16. It also crossed the important level at $2.85, the previous YTD high. Liquity remains above all moving averages while oscillators like the Relative Strength Index (RSI) and the Stochastic Oscillator have moved above the overbought level.

Therefore, Liquity price will likely continue rising as buyers target the next psychological level at $3.50. The stop-loss of this trade will be at $2.50.