The year 2021 is a significant one for Litecoin. After a tumultuous few years, Litecoin is finally seeing some stability and exciting new opportunities.
At the beginning of August, Litecoin joined the Bitpay app, allowing businesses like Newegg to accept Litecoin payments. This news comes amid other developments as Litecoin gears up to break resistance and finally start the uptrend we have all been waiting for.
All signs point towards the Bitcoin-based crypto finishing strong in 2021, despite expectations of a bearish market sometime this year or in 2022. Here’s why.
Litecoin’s SMA Has Been Consolidating
From a technical point of view, Litecoin has been holding very well around its 200-day Simple Moving Average (SMA) of $134.89. It opened the year trading at $132 and rallied to a high of about $335, before a correction bringing it to a low of $120.
You will remember Litecoin’s all-time high in 2017, and it may have possibly broken this record in May of 2021 before going back to lows of $150.
This double breakout is significant. LTC has already shown a firm consolidation around its 50-week SMA of $143.15, and it has been testing its resistance as support for a while now.
Before it can break out again on a full bullish run, LTC needs to break free of the double bottom formed by the 50-week SMA and its 2019 high that reached $146. The convergence of the 2019 high and the 50-day SMA stands as the barrier that LTC needs to break before a full-blown uptrend.
What If the Market Goes Bearish?
A bearish cryptocurrency market could stop LTC in its tracks, but it should not go below $127 if it is to limit its consolidation to the 50-day SMA.
Of course, nobody knows what the market will become. If LTC closes below this level, it could get the coin down to a low of $104.02.
Investors Remain Bullish
You may already know of John Kim’s $3,500 limit order (he of the Litecoin Foundation.) Penguin capital set a $2,200 limit, while Dan Gambarello believes LTC will rally to $1,000+.
These experts have their own reasons, of course, but there are solid signs for their optimism. In addition to Litecoin’s expanding adoption, security updates against trojans and other viruses.
The whales are definitely loading up on Litecoin, and part of the reason is that Litecoin has a lot of uptick potential. It is yet to blast through the $414 all-time high mark, and the near future looks very promising for the crypto.
Litecoin Price Prediction for 2021
Looking at all the factors both technical and fundamental, we expect Litecoin to close the year at a modest $330. Its bullish run is still ongoing at the time of publishing, but we expect the coin to rally before the end of the year.
More importantly, the price confirmed a double bottom pattern towards the close of July, which is projected to lead to at least a 30% gain. However, the coin still faces heavy resistance as it battles the double bottom trigger of $149.27.
At this point, however, it’s hard to tell if the recent highs were oversold, which could be signified by a falling wedge pattern. The best option right now for LTC investors is to buy and hold for the next two years or so, because the coin will very likely hit $500+ by its next halving in 2023.