Litecoin was the last major cryptocurrency to record a new all-time high during the 2020/2021 bull cycle. Despite lagging behind a little, LTC still notched impressive gains, and even now after the “bloodbath” May market, the so-called “digital silver” cryptocurrency is in the green year-to-date. Will June bring a renewed upthrust, or a capitulation into bearish territory?
Litecoin price in 2020 and 2021
Litecoin has seen excellent performance in 2021. Like most cryptos after the COVID-19 price crash in March 2020, the coin saw only a minor recovery, and then it entered a period of relative stability where it fluctuated up and down only by around $20, typically between $43 and $63.
This finally started to change around late November, as Bitcoin started approaching its previous all-time high of $20,000. With BTC consistently heading up, the crypto community assumed that the altcoin market would follow, and they were not wrong. By January 10th, 2021, LTC price was at $160. This level, however, turned out to be a rather strong resistance that rejected it and held it down between mid-January and early February.
Source: CoinMarketCap
Around February 7th, Litecoin price finally managed to breach the resistance and turn it into support, and right now it seems to be the project’s bottom, since it never went beyond this level since breaching it back in February.
LTC surged for the third time in 2021 around March 27th, and this time, it managed to skyrocket even higher than before. It reached $320 before being rejected, although this time, it did not drop all the way down to $160. Instead, its resistance-turned-support at $240 stopped its downward progression for the first and last time, even allowing the coin to bounce back up in record time.
That happened on April 25th, and it marked the beginning of Litecoin’s last great surge so far. However, this bull run was one to be remembered, as it took the coin to $400 for the first time in its history. Unfortunately, that was also when the crypto sector started seeing a strong bearish wave, and the price quickly started to retrace, eventually dropping back to $160, as mentioned.
Since the drop, this support allowed the coin to try climbing up two more times. LTC made one last attempt and it did not even manage to hit $200 before a correction started again. At the time of writing, June 4th, Litecoin price sits at $173.27, after dropping by 9% in the last 24 hours.
Source: CoinMarketCap
Litecoin price forecast
As always, giving a 100% accurate price forecast is impossible, not only for LTC but for any cryptocurrency. With that said, there are a few reasons to be optimistic about the LTC price.
Source: TradingView
The chart above shows that LTC has broken out of a brief ascending trend and is now heading towards support at around $120. This level acted as staunch resistance during Litecoin’s initial rally in December/January, and has since proven itself as a strong support level. The wick from May’s capitulation was stalled at this level, so it is likely that this support band will form LTC’s bottom.
Unless something particularly catastrophic happens to the crypto sector, it is unlikely that the coin will continue to head down. On the other hand, most experts agree that the bullish period is not over yet, and that, despite the losses, this should not be considered a crypto winter.
When it comes to TradingBeasts, their prediction says that LTC average price should remain where it is during June, with potential slow growth towards the end of the year. Its maximum price in months to come could go from $218 to $232 by December 2021. Arguably, TradingBeasts forecast for June is a ‘buy/hold’ signal. Buyers could step in here in anticipation of bullish action later in the year.
CryptoGround, on the other hand, disagrees on most accounts. This crypto price prediction website believes that LTC will fall to $150 in the following weeks, and then that it will jump back up to $168 by the end of the month. In six months, CryptoGround sees it at around $217, and at $237 by next year’s June. This analysis also gives us a ‘buy/hold’ signal for June.
Either buying or holding appear to be the smart plays here. It is very possible that we are witnessing one final “shakeout” — where inexperienced investors sell to veterans during a consolidation — before the bull run goes into overdrive later this year. A $200 target seems reasonable, with a new all-time high above $400 possible if the crypto market recovers more broadly.
Please note, the details provided above are entirely a personal opinion of the writer, derived from the relevant market data. None of these are meant to be taken as direct investment advice.