The price of LTC continues to maintain its bullish direction, which makes us think that it may be seeing significant gains in the near future. To find out more precisely what could be happening with Litecoin in 2021, I have prepared the following analysis and forecast.
At the time of writing, LTC is trading at $ 217.75. Accumulate a loss of 1.71% in the last 24 hours and a gain of 12.16% in the last 7 days.
The price of this cryptocurrency has remained locked in a wide lateral range with a resistance zone around $ 237.5, and support at $ 170.
Yesterday the bulls tried to challenge that immediate resistance; however, we again saw problems to be overcome, which has caused some losses so far this day.
Despite this, we continue to see a small succession of ever higher lows and highs, telling us that there is still strength to overcome that hurdle.
Litecoin forecast for 2021: monthly graphical analysis
When we look at the time frame with monthly candles, we notice that Litecoin has been resuming throughout 2020 and 2021, a large long-term uptrend, which has been practically at rest for more than 3 years.
We have had 7 months of continuous bullish rally, and although the force is not too much, at any moment we can see some bulls surprising us knowing that the major trend is in their hands.
The last 3 months we have seen how the price is hampered by the last resistance zone, the one left by the all-time high reached in 2018.
The behavior seems to tell us that a correction may be on the way. However, it is never a very good idea to try to bet against momentum and trend. It is possible that just a small pullback or break like the one we are seeing will be enough before resuming the dominant direction.
In the weekly candle chart we observe a clear medium-term upward trend, which has managed to maintain higher and higher minimums and maximums without violating immediate supports along the way.
As I mentioned at the beginning of this post, Litecoin has been locked in a lateral range for quite some time.
From this chart we note that the resistance that is hampering the rally is at $ 227.54.
The direction tells us that the odds are still on the bullish side, so we should soon see the price escaping above that resistance. For this scenario to change, the support at $ 170 must be broken.
After performing the analysis of Litecoin we can leave as a forecast for 2021 the following:
The dominant bullish intention should drive the price towards $ 285 at a minimum. The next target is $ 328.
As we are seeing the resumption of the long-term trend, even the supply zone left by the previous all-time high is probably not going to be a problem for the bulls.
You need to take into account how widespread the momentum is and the burnout seen on the monthly chart. We cannot pass up the possibility of a major correction. Although knowing the general moment in the market, the worst that we could see is a lethargic price for a little longer, before continuing with its main direction.
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