Litecoin is targeting the $300 mark following a renewed rally that saw the cryptocurrency rise by nearly 5% in the past day
Litecoin is up by nearly 5% over the past 24 hours, doing enough to maintain its position as the tenth-largest cryptocurrency by market cap. Its mini-rally comes despite a mixed performance from the broader crypto market.
LTC steered clear of the first major support level at $264 and rallied to an intraday high of $299.71 yesterday. A pullback occurred, but the cryptocurrency established support at $287 and has been trading within that range for the past few hours.
LTC is expected to rally higher in the coming days or weeks thanks in part to its recent one year hashrate high.
Litecoin’s hashrate is at a one year high. This is bullish for Litecoin! 🚀$LTC 💎🙌 pic.twitter.com/zatrWrSO6p
— Litecoin. Litecoin forever. Ⓜ️🕸 (@LitecoinForever) May 3, 2021
LTC price outlook
The LTC/USD 4-hour chart indicates that the cryptocurrency is in a positive trend and could maintain it for the next few hours. LTC’s MACD line is in the bullish zone, and it is trading relatively high above its 100-day simple moving average ($258.58).
LTC/USD 4-hour chart. Source: Coinalyze
Litecoin will need to avoid a drop to the $287 pivot level if it intends to run at the first significant resistance level at $307. However, support from the general market is needed if Litecoin is to reach Monday’s high of $299.71 and surpass it. Barring an extended rally from the market, Litecoin could find it hard to move past the first major resistance point. In the event of a huge breakout, the LTC/USD pair could test resistance at $320, with the second major resistance level currently found at $319.
However, failure to avoid the $287 pivot level could see Litecoin’s price decline, bringing the first significant support level at $276 into play. If there is no extended sell-off, Litecoin should comfortably stay away from its sub-$270 levels and the 23.6% FIB of $262. Currently, Litecoin’s second major support point is at $257.